Closing the trading session on 5/2, spot world gold lost 187 USD per ounce, falling to 4,776 USD. The decline continued into the morning of 6/2, pushing the precious metal's price to 4,654 USD at one point.

Silver prices mirrored this trend, falling 12,1% during the 5/2 session. Currently, each ounce stands at 63 USD.

World gold prices at one point fell below 4,700 USD on the morning of 6/2. Chart: Kitco

Analysts attribute the fall in gold and silver prices to a strengthening US dollar and a widespread market sell-off. The US dollar index is at a two-week high. The S&P 500 on the US stock market reached a two-week low, with the Nasdaq hitting its lowest point since early 12/2025. The cryptocurrency market also saw declines, as Bitcoin dropped below 70,000 USD.

"Many people face margin issues and may have to sell precious metals to cover losses in the stock market. But fundamentally, nothing has changed," commented Bob Haberkorn, a strategist at RJO Futures.

The precious metals market experienced significant volatility last week. Both gold and silver experienced their sharpest daily declines in decades, following peaks last week.

"Volatility remains elevated. Markets often need time to fully adjust, suggesting potential for further declines," noted Fawad Razaqzada, a market analyst at City Index.

Geopolitical developments also influenced market sentiment. Russia and Ukraine reached a large-scale prisoner exchange agreement after US-mediated talks. US President Donald Trump also had a "very positive" phone call with Chinese Chairman Xi Jinping this week. Markets are now focused on US-Iran talks scheduled for friday in Oman.

Meanwhile, JPMorgan stated in a report that gold and silver prices are unlikely to move independently. However, silver's current relatively high price makes it susceptible to sharp corrections. The bank raised its short-term floor price for silver to 75-80 USD, forecasting a recovery to 90 USD next year. Recent significant volatility in silver prices has led jewelry brand Pandora to plan a shift to platinum-plated products.

Spot world platinum prices currently fell 7,5% to 2,057 USD per ounce. Meanwhile, palladium stands at 1,680 USD.

Ha Thu (according to Kitco, Reuters)