Metals Recover from Two-Week Slide
Gold and silver surged on Tuesday as bargain hunters stepped in after a two-week decline, despite ongoing U.S.-Iran military strikes. Spot silver jumped as much as 5%, its largest intraday gain in over five weeks, while Comex silver for September delivery rose 3.6% to $59.11 an ounce. Comex gold for August delivery gained 1.6% to $4,080.90, with spot bullion near $4,078.
Market Drivers
Silver outperformed due to industrial demand and safe-haven buying. About 50% of silver consumption is industrial. Oil prices climbed as U.S. and Iran exchanged strikes for the 10th consecutive day, while Yemen’s Houthis warned vessels against calling at Saudi ports. A proposal for a 10-day ceasefire is under discussion, and traders see a 64% chance of a Fed rate hike by September.
Technical Outlook
Analysts caution that while dip-buying fueled the rally, gold remains technically bearish, and sustained upside would be surprising. Rhona O’Connell of StoneX noted that the recent gains likely reflect short-term buying rather than a trend reversal.
Global Supply Dynamics
Russia sold 43.5 tonnes of gold in the first half of 2026, the largest six-month sale in 25 years, reducing reserves to 73.4 million ounces. Meanwhile, China’s wholesale gold demand is near decade lows, with local ETFs posting record monthly outflows, although the central bank maintained a 20-month buying streak. India’s silver import restrictions are causing local shortages, driving dealer premiums to $6.50 per ounce, marking a six-month high.
Other Precious Metals
Platinum and palladium also rose, benefiting from the broader safe-haven and industrial demand surge.
Performance Year-to-Date
Gold is down about 6% in 2026 from its January peak near $5,600, while silver has dropped roughly 17% from its all-time high above $120. Despite these declines, both metals remain well ahead of prices from a year ago.
