The precious metals sector is under pressure, with Zhaojin International Gold Co.,Ltd. (000506.SZ) and Inner Mongolia Xingye Silver&Tin Mining Co.,Ltd. (000426.SZ) hitting the daily downside limit, driven by a hawkish Federal Reserve, a stronger U.S. dollar, and a cooling of safe-haven demand, causing synchronized declines in gold and silver prices.

On June 23rd, the precious metals concept continued to weaken. Zhaojin International Gold Co.,Ltd. (000506.SZ) and Inner Mongolia Xingye Silver&Tin Mining Co.,Ltd. (000426.SZ) both fell by their daily limit. Chifeng Gold (600988.SH) touched the limit-down level, while Hunan Gold (002155.SZ), Western Region Gold (601069.SH), Shandong Gold (600547.SH), and Sichuan Gold (001337.SZ) followed suit lower.

On the news front, spot silver extended its losses to 3% on the day, trading at $63.07 per ounce, while spot gold fell 1% to $4,150.35 per ounce. The Federal Reserve's June meeting dot plot signaled a strongly hawkish stance, with half of the officials supporting a rate hike within 2026 and expectations for a rate cut this year being completely erased. The market is even betting on a 25-basis-point hike in September, pushing up real Treasury yields and increasing the holding cost for precious metals, leading to substantial outflows from gold and silver ETFs.

Simultaneously, the U.S. dollar index held firmly above the 101 mark, reaching its highest level in nearly a year. The dollar-denominated prices of gold and silver faced downward pressure, forming a significant negative correlation where a stronger dollar leads to weaker precious metals. Furthermore, eased tensions in the Middle East from U.S.-Iran talks have diminished geopolitical safe-haven demand, with capital flowing towards the U.S. dollar and Treasuries, further eroding the risk premium for precious metals.