Gold settles lower, silver falls nearly 2.5%

Gold and silver Bars

Gold and silver prices settled lower on Wednesday as expectations of tighter monetary policy, particularly by the US Federal Reserve, weighed on precious metals amid inflationary pressures stemming from the conflict in the Middle East.

Precious metals came under pressure as hostilities involving Iran intensified and the US military carried out strikes near the Strait of Hormuz, while there were no tangible signs of progress in diplomatic efforts to end the war.

The renewed geopolitical uncertainty helped keep oil prices elevated despite comments from Donald Trump that Iran had agreed not to pursue nuclear weapons.

On monetary policy, John Williams, President of the Federal Reserve Bank of New York, reiterated that the Fed has no immediate need to change interest rates. In contrast, Beth Hammack, President of the Federal Reserve Bank of Cleveland, said the central bank may need to raise rates in the near future.

Settlement prices for June 3, 2026.