Precious Metals Tumble as Trump’s Fed Pick Shakes Markets
Gold and silver prices plunged following President Donald Trump's nomination of Kevin Warsh as Federal Reserve chair. Spot gold fell 9% while silver cratered 28%—their steepest declines in months—as investors dumped precious metals to reposition for Warsh's anticipated dollar-friendly policies.
The selloff reflects market skepticism about Warsh's willingness to pursue aggressive rate cuts. Precious metals typically thrive in low-rate environments, but traders appear unconvinced Warsh will deliver the dovish policies some alternative candidates might have. Equity markets also dipped modestly amid the uncertainty.
All eyes now turn to the January jobs report due February 6. Any signals about future rate trajectories could trigger further volatility across asset classes. The metals market's violent reaction underscores how deeply Fed leadership decisions Ripple through global finance.
