Gold Silver Prices Crash Hits Dark Side! Spot Gold Falls Below $4,200, Silver Down 2%; Citi Cuts COMEX Target

Gold and silver rates' crash intensified in the early hours of Wednesday, with spot gold erasing the $4,200 mark and hitting its lowest level since December 2025. Spot silver crashed harder, giving up the $64 mark. The performance is ahead of US CPI inflation data, which is expected to reach its highest level in three years. The market is predicting 4.2% US CPI, which heightens the probability of a rate hike from the US Federal Reserve. Also, a stronger dollar continues to be another drawback for gold. The selloffs in precious metals, which should have found support in the latest Middle East crisis, are now trapped in a conundrum. Global brokerage Citigroup believes there are limited catalysts for upside in gold in the near term.

Spot Gold Price

Spot gold price dropped to trade around $4,180 per ounce, registering a decline of over 1% in the early trade of Wednesday. This is the lowest level since December 8, 2025.

Spot Silver Price:

Meanwhile, spot silver dropped by over 2% to nosedive under the $64 mark. Currently, this precious metal traded around $63.84 per ounce, also the lowest level since December 8, 2025.

Why Gold & Silver Rates Crash Today?

The major reason behind the latest crash is the renewed hostilities between the US and Iran, which attacked each other again, right after President Donald Trump had warned Israel to stop attacking the Islamic Regime. The US launched new strikes, called 'self-defence strikes,' against Iran, right after Israel and Iran agreed to halt attacks on each other.

This brought back fear of a prolonged energy crisis globally and inflationary pressures.

The latest escalation has cast doubt on the durability of a fragile ceasefire and the prospects for a broader peace agreement, while extending the near-complete closure of the Strait of Hormuz. Rising energy costs linked to the conflict have heightened fears of persistent inflation and the possibility of further central bank tightening, weighing on non-yielding assets such as precious metals, as per Trading Economics.

The USA will declare its CPI inflation data for May 2026 on Wednesday, which will be observed as it will give further clarity on rates decision from the US Federal Reserve who will announce the June policy outcomes later this week. The market is estimating the US inflation rate to climb to 4.2% in May, which could be its highest level in three years, owing to the global energy crisis.

"Market focus has now shifted to the upcoming US inflation data due on Wednesday, which will be crucial in shaping expectations around future Federal Reserve policy. Investors will also closely watch comments from Fed Chair Kevin Warsh for clues on the interest rate outlook," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

Citigroup Cuts Spot Gold Target

Citigroup has lowered its near term target for COMEX gold to $4,000 per ounce from an earlier $4,300, due to limited catalysts for a sustained move higher in the yellow metal.

In a note, Citigroup highlighted that stabilizing real yields, stronger short-term dollar bias, easing geopolitical tensions and decline in safe-haven premiums will play a role in defining sentiments in spot gold. Also, the brokerage took note of the moderation in physical gold demand from central banks and ETF inflows.

Unless there are fresh shocks, Citigroup sees upside catalysts to be capped in the near term. Citi believes that gold could move higher $4,000 if inflation reignites or economies weaken further. Despite this, Citi has maintained its 6-12 months target of $4,500 per ounce on gold.

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