Gold and silver got crushed. One bad sell-off wiped out nearly $600 billion from the precious metals market in just a few hours.
People are selling because of a few things. Confusion in the Middle East keeps growing. Fear over inflation will not go away. And the U.S. dollar got stronger. That last part hurts gold and silver because they do not pay any interest. So when the dollar looks better, people sell the metals.
Why the Gold Price and Silver Price Dropped So Fast
The big trigger came from mixed news about a possible US-Iran peace deal tied to the Strait of Hormuz. Iranian state media said the two sides talked about a plan to lower tensions. Markets moved fast. Oil dropped below $89 a barrel because traders thought less fighting meant fewer supply problems.
Then a few minutes later, the White House denied the whole thing. They called it a complete lie. That sudden switch created panic. Traders had to rethink risk on the fly, and the gold price and silver price swung wildly. The market is still jumpy about anything happening in the Middle East. Every new piece of news moves prices hard in both directions.
🚨 US NOW CALLS THE REPORTED IRAN PEACE DEAL A “COMPLETE FABRICATION”Iranian state media earlier released what it claimed were initial details of a US-Iran “Memorandum of Understanding” focused on de-escalation in the Strait of Hormuz.
Markets reacted immediately.
Oil prices… pic.twitter.com/miqg3sa0A1
— Wise Advice (@wiseadvicesumit) May 27, 2026
Inflation worries are also pushing on metals. The US Consumer Confidence Index fell to 93.1 in May from 93.8 in April. People are getting more worried about rising costs from the ongoing fights.
Oil prices are making things worse. Oil swings are feeding inflation fear around the world. And governments are starting to step in more heavily on bullion markets. Malaysia put a 10% tax on bullion imports. Ghana ordered big miners to sell 30% of their gold straight to the central bank. Those moves are drying up liquidity and adding more unknowns to the metals market.
At the same time, some analysts believe large banks are accumulating physical gold despite the sell-off. Data shared by Macro Alpha claimed Bank of America issued 1,698 gold delivery notices in one day, while Deutsche Bank, BNP Paribas, and JP Morgan reportedly increased bullion holdings and reduced physical deliveries.
🚨 WARNING: The physical gold market is breaking right in front of your eyes.While you are obsessing over Bitcoin at $75k…
The world’s largest banks are quietly draining the COMEX.
Bank of America just issued 1,698 gold delivery notices in a single day.
Deutsche Bank, BNP… pic.twitter.com/OLuwta1hnB
— Macro Alpha (@MacroAlphaHQ) May 27, 2026
Nearly 850,000 ounces of gold reportedly moved through COMEX during May alone. That has fueled speculation that institutional players are preparing for deeper stress inside the financial system even as short-term prices remain weak.
Silver Price Analysis: Momentum Continues To Fade
We had a look at the silver chart and the weakness has been developing for weeks. The silver price traded near the $88 region earlier in May before sellers stepped in aggressively.
Since then, every recovery attempt has failed to break previous highs, creating a pattern of lower highs and steady downside pressure. The latest move pushed silver close to the $74 area, wiping out a large portion of May’s rally.
The technical numbers also show less strength. The stochastic oscillator fell into oversold ground. Both signal lines are now below the 20 mark. The RSI weakened too and sits near 35. That means buying power keeps disappearing.
Unless the silver price jumps back above the $76 to $78 zone fast, traders will likely keep pushing toward lower support levels in the short run.
Gold Price Analysis: Bears Take Full Control
We also checked the gold chart and the structure looks even weaker. The gold price failed several times near the $4,800 area earlier this month before sellers completely took over. Since then, gold has printed a sequence of lower highs and lower lows, with the latest breakdown dragging prices close to $4,430.
Momentum indicators are flashing weakness across the board. RSI dropped near 35, showing strong bearish pressure, while the RSI histogram turned deeply negative with expanding red bars.
That usually points to increasing downside momentum. Buyers need to reclaim the $4,500 to $4,600 zone quickly to stabilize sentiment. If that fails, traders could continue reducing exposure ahead of the US inflation data and further geopolitical developments.
Gold and silver are dropping for a few reasons. Traders are stuck between confusing war news, inflation that won’t cool down, and the growing idea that interest rates will stay high.
Until the inflation numbers come out and the fighting in the Middle East settles down, precious metals will likely keep swinging hard.
