Precious Metals Pull Back as Fed Signals and Easing Iran Tensions Weigh on Safe Havens

Gold and silver futures fell on Monday as traders weighed a more hawkish Federal Reserve backdrop, a firmer dollar and signs that geopolitical risk in the Middle East was easing.

Front-month Comex gold for June delivery settled 1.0% lower at $4,181.90 an ounce, while Comex silver fell 1.1% to $65.527 an ounce. Both metals finished lower for a second straight session.

Earlier in the day, gold was already under pressure in early trading. Barron’s reported the metal down 0.7% at $4,218.20 as investors assessed progress in U.S.-Iran talks and the prospect of higher interest rates for longer. The U.S. dollar index was also slightly higher, adding to the pressure on dollar-priced commodities.

Why the metals slipped

Gold tends to struggle when markets move toward higher rate expectations because it does not pay interest. That makes it less attractive relative to cash and other yield-bearing assets when the Fed is seen staying tighter for longer.

The dollar move mattered as well. A stronger dollar can make bullion more expensive for overseas buyers, which can damp demand at the margin.

The geopolitical backdrop also softened. AP reported that U.S. and Iranian officials made progress in talks in Switzerland, with Vice President J.D. Vance saying the discussions laid a good foundation for a final deal. The talks were mediated by Qatar and Pakistan and included movement on reopening the Strait of Hormuz and a ceasefire in Lebanon.

That easing in safe-haven demand comes at a time when metals have been volatile. The Wall Street Journal said gold’s two-day decline was the largest since June 10 and that the metal was more than 21% below its January 2026 high. Silver was said to be about 43% below its January peak.

What traders are watching next

Market participants will be watching for more Fed commentary that could reinforce or soften the current hawkish tone. Any signal that rates may stay elevated for longer would likely remain a headwind for non-yielding assets such as gold.

Traders are also tracking whether U.S.-Iran diplomacy produces a more formal interim deal or simply continues as a tentative framework. If tensions continue to ease, safe-haven buying could remain muted.

Analysts are also watching whether gold can hold above the $4,000 level cited in market commentary or drift back toward it if the current pullback extends.

Other longer-term factors remain in play, including exchange-traded fund inflows that Morgan Stanley says could matter for gold’s broader upside.