Gold and Silver Fall as Trump Rejects Iran Peace Plan

Gold and silver futures opened lower on Monday after President Trump rejected Iran's latest peace proposal, calling it "TOTALLY UNACCEPTABLE!" in a Truth Social post. Gold June futures fell 0.9% to open at $4,690 per troy ounce, then slipped further to $4,673.90 by 6:45 a.m. ET. Silver July futures also opened 0.9% lower at $80.15 per ounce, but edged up slightly to $81.06 in early trading.

The decline in precious metals reflects a shift in risk sentiment as geopolitical tensions resurface. Trump's rejection of the Iranian peace plan has increased uncertainty in the Middle East, typically a supportive factor for gold. However, the immediate market reaction favored the US dollar as a safe haven, which pressured gold and silver prices. The inverse correlation between the dollar and gold is a well-established mechanism: a stronger dollar makes gold more expensive for holders of other currencies, dampening demand. Additionally, rising real yields on US Treasuries, which often accompany geopolitical risk aversion, can reduce the appeal of non-yielding assets like gold. Live gold prices and charts on NowPrice show how the market is reacting to these crosscurrents in real time.

Traders will now focus on upcoming US economic data, including consumer price index (CPI) and retail sales figures due later this week, which could influence Federal Reserve policy expectations. Any hawkish signals from the Fed would further weigh on gold, while a dovish tilt could provide support. The geopolitical situation in the Middle East remains a wildcard, with any escalation potentially reigniting safe-haven buying in gold. Key levels to watch include support at $4,600 for gold and $78 for silver, with resistance at $4,750 and $82, respectively.