Gold and Silver Price Forecast: Truce Stability Amid Iran-Israel Conflict

Key Points

• The US-Iran ceasefire has held for over nine weeks, allowing for a gradual resumption of tanker traffic through the Strait of Hormuz.
• Gold prices have dropped sharply to $4,294, breaking below key support levels.
• Silver prices tumbled to $66.53 after failing to maintain levels near $72.70.

Market Overview

On June 8, 2026, both gold and silver showed limited directional movement as traders processed stronger-than-expected U.S. inflation data for April. The consumer price inflation and core inflation figures exceeded estimates, dampening expectations for Federal Reserve rate cuts under Kevin Warsh's leadership. This scenario has supported real interest rates and the U.S. dollar, capping potential gains for gold.

Central bank buying, particularly from the People's Bank of China, has been a significant factor in gold's performance, as it has consistently purchased gold for over 17 months. In contrast, silver has faced declining safe-haven demand due to its industrial applications, particularly in solar panels, electric vehicles, and electronics.

Gold Price Analysis

Gold Spot is currently at $4,294, having broken below the horizontal support level around $4,300 and the blue downtrend channel base. The price action indicates a bearish trend, with strong selling volume and a Relative Strength Index (RSI) below 45, suggesting fading momentum. The next support levels are projected between $4,239 and $4,200.

Trade Idea: Sell at $4,294, with a stop loss at $4,340 and a target at $4,239.

Silver Price Analysis

Silver Spot is currently at $66.53, having rejected the 50-period moving average around $72.70. The price has broken below the support level at $68, indicating a bearish trend with fresh lower lows. The RSI for silver has dropped below 40, confirming a loss of momentum. The next downside support is identified between $65.50 and $63.39.

Trade Idea: Sell at $66.53, with a stop loss at $68.00 and a target at $65.50.