Gold futures came under significant pressure on Wednesday, dropping over 3% and breaking below the 4,000 level. The unwinding of the wartime risk premium, driven by the ongoing U.S. and Iran peace deal and increased tanker traffic in the Strait of Hormuz, has weighed heavily on the precious metals complex. Additionally, a 40% drop in crude oil from its conflict peak has pulled inflation expectations lower, reducing safe-haven demand. Market attention now shifts to the upcoming core PCE print, with consensus estimates at 0.3%. A hot reading could prompt the Fed, under Chairman Warsh, to consider a rate hike, which is currently priced at a 32.1% probability. Silver futures also faced steep declines, falling over 5% below the $60 mark, while July Copper futures broke below $6 ahead of a key White House decision on refined copper import tariffs. Despite near-term weakness, long-term support for copper remains intact due to ongoing AI and clean energy demand.