<p>Retail bargain hunters stepped in significantly over the past few days as gold and silver markets suffered their sharpest setback in several months last week.</p>
<p>The selloff was driven less by any deterioration in precious metals fundamentals and more by a rapid repricing of interest-rate expectations following stronger-than-anticipated U.S. economic data.</p>
<div class="break-normal mx-auto md:float-right md:w-1/2 px-3"><img class="mx-auto" src="https://www.moneymetals.com/uploads/content/silver-spot-chart-260608-md.png" width="360" height="226" alt="Silver Spot Chart (June 6, 2026)" loading="lazy" />
<p class="text-center mb-0"><i>Silver is testing its 200-day moving average, a key price support level.</i></p>
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<p>Gold declined nearly 5% for the week, while silver plunged almost 9%, extending a correction that has gathered momentum since reaching multi-month highs earlier this quarter. Silver once again demonstrated its more volatile nature, amplifying gold's downside move and causing the gold-to-silver ratio to widen significantly.</p>
<p>The primary catalyst was the May U.S. employment report. Non-farm payrolls increased by 139,000 jobs, surpassing expectations, while the unemployment rate held steady at 4.2%. The data reinforced the perception that the labor market remains resilient despite mounting concerns over slowing economic growth, which reduced expectations for near-term Federal Reserve rate cuts.</p>
<p>That shift pushed Treasury yields and real interest rates higher while boosting the U.S. dollar. Since precious metals compete with interest-bearing assets for investor capital, rising real yields tend to create headwinds for both gold and silver.</p>
<p>The payrolls report effectively removed a portion of the safe-haven premium that had accumulated in recent weeks and triggered widespread liquidation among leveraged futures traders.</p>
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<p>Geopolitical risks offered little support. Ongoing hostilities in the Middle East and elevated energy prices failed to generate meaningful safe-haven buying. Instead, investors focused on the inflationary implications of higher oil prices and the possibility that sticky inflation could force the Federal Reserve to keep policy restrictive for longer.</p>
<p>From a technical perspective, the damage was significant. Gold broke below both its 20-week and 40-week moving averages while momentum indicators deteriorated.</p>
<p>Silver's chart also weakened substantially, although the metal remains near important longer-term support levels and has not yet confirmed the same degree of structural breakdown seen in gold.</p>
<p>Despite the sharp decline in paper markets, physical demand remains relatively healthy.</p>
<p>Buyers in North America and Asia have stepped in to take advantage of lower prices.</p>
<p>Meanwhile, silver continues to benefit from strong long-term industrial demand tied to electrification, solar installations, grid upgrades, and data-center expansion.</p>
<p>Premiums on coins, bars, and rounds remain at the lowest point seen since last year.</p>
