Key Takeaways:
Gold fell 23% from its January 2026 high of $5,608/oz to $4,331 on June 5, 2026.Kevin Warsh’s Fed and a 172,000 May payrolls beat pushed rate-hike odds higher, pressuring metals.Central banks added roughly 19 tonnes of gold in April, but Western outflows continued driving prices down.Platinum and palladium joined the rout. Platinum fell 6.23% to a $1,775 bid. Palladium dropped 6.87% to $1,207.
Why Classic Safe-Haven Logic Is Breaking DownBull Theory added:
Warsh Fed and the May Jobs ReportThe result: metals traders who entered 2026 positioned for rate cuts have spent five months unwinding those bets.
Central Banks Buy, Western Investors SellThe Federal Open Market Committee (FOMC) meets June 16 and 17 in Warsh’s first meeting as Chair. A hold is widely expected. The dot plot, Summary of Economic Projections, and Warsh’s press conference tone will be the key variables to watch closely. A hawkish signal extends the correction. Any de-escalation on the Iran front or softer jobs data could produce a relief move in the opposite direction.
