Gold and silver reversed sharply after renewed Iran-US strikes in the Gulf, with gold falling back below $4,100/oz. Central banks kept buying bullion through the slide, while physical silver demand at the Perth Mint collapsed, according to Heraeus analysts.
Gold slid to test the $4,000 support level after the North American open, last trading at $4,013.64 for a loss of 2.60% on the session. The sharp move in gold reversed the recent fortunes of both gold and silver after the latest round of conflict between Iran and the United States, according to precious metals analysts at Heraeus.
Gulf strikes strain the ceasefire
Heraeus said the fresh exchanges of military strikes in the Gulf are putting significant strain on the ceasefire between the two sides. The relationship appeared to end abruptly on 6 July when the Iranian Revolutionary Guard Corps fired missiles at commercial ships, prompting retaliatory strikes from the US, after which Iran struck Bahrain, Kuwait and Qatar.
Precious metals dropped across the board in the wake of the strikes, with gold falling back below $4,100/oz and silver below $60/oz. Oil rallied at the same time, with Brent Crude topping $80/bbl and WTI $75/bbl on Wednesday, resurfacing fears the conflict could affect price stability and, ultimately, monetary policy. Since then oil has eased and precious metals have rebounded, which Heraeus reads as a sign the market expects the flare-up to dissipate into slow-moving negotiations.
Central banks keep loading up
Central banks used the opportunity to load up on gold, buying 41 net tonnes in May. Poland and China led the way, purchasing 18 tonnes and 10 tonnes respectively, lifting Poland’s reserves to 614 tonnes and past the Netherlands as the tenth-largest holder in the world.
The People’s Bank of China purchased 15 tonnes of gold in June, adding to its reserves for the twentieth consecutive time. That was its biggest monthly addition since October 2023. The PBoC now holds 2,346 tonnes of gold, around 9% of the value of its total reserves.
Silver demand evaporates
Physical silver told the opposite story. The Perth Mint announced silver sales of 294 koz in June, down 19% from 364 koz in May, itself the lowest monthly total since April 2012. That marked a 37% year-on-year drop from the 464 koz sold in June 2025, as the silver price fell 22% in June from $75/oz to $58.5/oz.
Silver kept testing its lows into Monday morning, last trading at $58.089 per ounce for a loss of 2.97% on the daily chart.
Source: Kitco News
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