Gold (XAUUSD) & Silver Price Forecast: Gold Tumbles Under $4,500 as Silver Tests Support — Breakdown Ahead?

Gold and Silver Consolidate as Inflation Data and Ceasefire Stability Shape Outlook

Gold and silver traded without much of a directional bias on June 1, 2026, as the markets digested April’s unexpected inflation data from the United States, as well as whether the truce between the United States and Iran will last. April’s consumer price index showed headline and core numbers above expectations, which put a damper on hopes of interest rate cuts in the near-term by Federal Reserve Chair Kevin Warsh, propping up real yields and the greenback, while also putting a lid on gold and silver rallies.

Gold continues to benefit from its strong bid from central banks, with the People’s Bank of China extending its buying streak for more than 17 months, while other official institutions are boosting allocations. Silver, which has a significant industrial share, is navigating its weaker safe-haven flows but with global deficits remaining.

With the Iran truce remaining intact, and an incremental normalization of oil flows, the precious metals are slowly pivoting to fundamental trading. The Federal Reserve and upcoming economic data will offer more clues to the policy path for the precious metals.

Gold Spot Declines to $4,498 – Blue Descending Channel Breakdown

Gold Spot sits at $4,497.72 on the 4H chart following red engulfing candles that fell beneath the $4,500 psychological support, the red 50 period MA at roughly $4,526 and the blue descending channel base. The bearish continuation from the $4,635 high is intensifying as lower lows are being made with very strong distribution wicks. This pushes price to the Fib extension of $4,460 to $4,436.

RSI is now below 45 signaling that momentum is not bullish. The volume profile indicates the failed fair value at $4,526 to $4,550 where selling pressure is now more dominant. The white descending trendline is acting as the ceiling to price recovery as it reaches the $4,576 area. Price is now bearish below the $4,526 area as it moves inside a very extended down-channel from the May highs. Resistance remains firm at the $4,635 pivot on the higher timeframe.

Trade Idea: Sell $4,497 to $4,460, stop loss $4,526.

Silver Spot Trades at $75.58, Rejects Red MA 4h

Silver spot trades at $75.58 on the 4H chart after mixed candles are rejected from the red 50 period MA at roughly $76.50 and the blue descending trendline. There are bearish wicks being formed to lower highs from the $78 area on a test to the $75.00 area. RSI is hovering around the 48 area signaling neutral to bearish.

Volume profile shows that the heavy supply zone is now around $76.04. The next areas of support are found near the Fib confluence of $74.26 to $73.20. Price is weakening as it is falling below the $76.50 area to move inside an extended down-channel from the May highs.

Trade Idea: Sell $75.58 to $74.26, stop loss $76.04.