Kuala Lumpur, El Sky News Gold and silver prices fell sharply after former U.S. President Donald Trump announced Kevin Warsh as his choice to lead the Federal Reserve, triggering a strong reaction across financial markets.
The decline in precious metals came alongside a strengthening U.S. dollar, which pressured gold and silver prices as a firmer dollar makes dollar-denominated assets more expensive for overseas buyers. Both metals had previously rallied on expectations of easier monetary policy.
Market analysts said the sell-off was driven by shifting expectations around future interest rate policy. Warsh is widely viewed as a more hawkish figure on inflation, raising concerns that interest rates could remain higher for longer. Such a policy stance typically weighs on non-yielding assets like gold and silver.
Profit-taking also contributed to the sharp move lower. Gold and silver had posted notable gains in recent weeks, prompting investors to lock in profits following the policy-related news.
The downturn in precious metals spilled over into related sectors, with shares of mining companies coming under pressure as commodity prices retreated.
The latest market reaction highlights the sensitivity of precious metals to changes in U.S. monetary policy expectations and dollar movements. Investors are now closely watching further signals on the Federal Reserve’s future direction, as well as Trump’s next political and economic moves that could continue to influence global markets.
