Fed's Hawkish Pivot Triggers Precious Metals Sell-Off; SHFE Silver, Gold Plunge Over 5%

According to Jin10 Futures, precious metals tumbled on June 22 following the Federal Reserve's latest policy decision. SHFE silver fell over 5% and SHFE gold dropped over 3%, with platinum and palladium declining over 4%, as multi-position holders cashed in profits.

The Fed held rates steady but removed forward guidance suggesting rate cuts, with the dot plot showing half of officials now projecting at least one rate hike this year. Additionally, U.S.-Iran negotiations faltered after Israel's continued strikes on Lebanon and Trump's threats prompted Iran to temporarily withdraw and threaten to close the Strait of Hormuz, rattling risk sentiment. Global gold ETF (SPDR) holdings increased marginally to 1,020.5 tons, while silver ETF (iShares) holdings fell 22.51 tons week-over-week.