Investors in gold and silver may need to brace for a longer period of uncertainty, with analysts warning that precious metals are unlikely to replicate last year's rally and could extend their recent declines. Both metals have slipped below key technical support levels, sparked by a rebound in crude oil prices and inflationary expectations that have reduced the likelihood of interest rate cuts by the US Federal Reserve."The disruptions in the Strait of Hormuz have reignited global inflation concerns by pushing up oil prices. The US 2-year Treasury yields, a key proxy for Fed rate expectations, have climbed to their highest levels since February 2025, creating challenges for gold and silver, which are seen as anti-dollar trades," said Anindya Banerjee, head of commodity and currency research at Kotak Securities.Gold was trading flat at $4,075 per ounce on Thursday evening, while silver stood at $63.5 per ounce, up 1% over the previous trading session. Brent crude futures for August delivery were near $93 per barrel, up more than 30% from $71 before the escalation of the West Asia conflict in February. The US 2-year Treasury yield was at 4.131%, up 0.1 percentage point."Higher interest rates and a stronger dollar reduce the attractiveness of non-yielding assets like gold and silver," said Ajit Mishra, senior vice-president - research at Religare Broking.Mishra said the recency bias from last year's strong performance has faded, triggering a reset in investor positioning. This has led to muted fresh buying and ETF outflows, a trend he expects to persist in the coming months. In May, gold exchange-traded funds saw net outflows of ₹725 crore, the first in 13 months, while silver ETFs recorded outflows of ₹2,133 crore.The market is now witnessing a "sell on rise" approach in both metals, with the near-term outlook turning decisively bearish, said Naveen Mathur, director - commodities and currencies at Anand Rathi Shares & Stock Brokers."Dollar is the key," Mathur said. "As long as the dollar index holds above 100, a recovery in precious metals is unlikely."ET BureauWeak OutlookMathur said gold has already breached its 200-day moving average of $4,088 and could drift towards $3,800. "Silver may also drift lower to $55-60 levels in the coming days," he said. "Investors who accumulated positions last year can continue to hold, while fresh investors may consider gradual accumulation, with a potential 15-20% return over a 2-3 year horizon," said Mishra, who sees gold testing $3,900, with support at $4,000-4,020, and silver declining towards $54-55 if current levels fail to hold.