Silver price crashed from $63 to $58 today. Gold price dropped from $4,150 to nearly $4,000. The sell-off was sudden and violent.
Over $600 billion was wiped out from precious metals in just 90 minutes. Gold fell -1.7%, erasing $477 billion. Silver price dropped -4%, wiping out $133 billion.
The trigger? President Trump announced the Iran ceasefire is over.
What you'll learn 👉
Trump Ends the Ceasefire
Trump made the announcement in an interview at the NATO/Ankara summit. He was blunt: “I don’t want to deal with them anymore, they are scum.”
He expressed frustration and indicated he is done with the agreement, which had been a temporary “Memorandum of Understanding.” The ceasefire had been in place to ease tensions in the Strait of Hormuz and other flashpoints.
The markets reacted immediately:
- S&P 500: -1.0%
- Nasdaq 100: -1.5%
- Dow Jones: -1.3%
- WTI Crude: +5.0%
- Brent Crude: +6.0%
- Gold: -2.5%
Oil prices surged as geopolitical risk returned. Stocks fell as investors rotated out of risk assets. And precious metals – which had been expected to rally on war fears – crashed.
BREAKING: President Trump says the US is "cutting off all trade with Spain."
— The Kobeissi Letter (@KobeissiLetter) July 8, 2026
"I don't want anything to do with Spain," Trump says. pic.twitter.com/eN7bbpwWzh
Why Gold and Silver Fell Despite Geopolitical Tension
This is the counterintuitive part. War fears typically push gold higher. But when the ceasefire ended, gold dropped.
The explanation is the same as last time. When geopolitical tensions spike, oil prices surge. Higher oil means higher inflation expectations. Higher inflation expectations force the Federal Reserve to stay hawkish. A hawkish Fed lifts the dollar. A stronger dollar presses gold.
Gold is also correlated with risk assets in the short term. When the Nasdaq and S&P 500 sell off, leveraged investors sell whatever they can to raise cash – including gold and silver. That creates a feedback loop that accelerates the decline.
Analyst Van de Poppe: Gold Has Turned a Corner
Market analyst Michaël van de Poppe thinks gold has turned a corner – and not in a good way. He says the big run-up earlier this year is over.
His reasoning comes down to one thing: how fast it climbed. Gold shot up fast, hit a peak above $5,500, and then tumbled back toward $4,100. That puts it about 25% off its high.
When something goes up that quickly, it often comes back down just as hard. Markets that rise aggressively produce equally volatile declines once buying momentum fades.
For that reason, van de Poppe said he has no interest in buying at today’s levels despite gold already giving back a large portion of its gains.
Where Could Gold and Silver Go From Here?
The end of the ceasefire introduces a new variable. The risk of a broader conflict in the Middle East is back on the table. That is typically bullish for gold in the long run.
But the short-term mechanics are bearish. Oil prices are surging. The Fed will stay hawkish. The dollar will remain strong. The Nasdaq is falling. All of these pressures on gold are still in place.
- Support: $4,000 is the key psychological level. A break below could send gold to $3,900 and then $3,800.
- Resistance: $4,150 is the immediate resistance. A break above could trigger a relief rally toward $4,300.
- Van de Poppe’s view: He expects further downside. $3,800 is a realistic target if the downtrend continues.
Silver price analysis:
- Support: $58 is the level to watch. A break below could send silver to $55 and then $52.
- Resistance: $63 is the immediate resistance. Silver needs to reclaim that level to stabilize.
- Volatility: Silver’s beta is higher than gold’s. Expect bigger percentage moves in both directions.
The catalyst to watch: Trump’s comments today are just the start. The market will be watching for any further escalation – military action, new sanctions, or a broader conflict. If the situation stabilizes, gold and silver could bounce. If it escalates, the risk-off move will continue.
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