Kevin Warsh\u2019s nomination is seen as a catalyst that triggered profit-taking and technical selling after an extended rally in precious metals<\/p>\n
Gold and silver prices plunged on Friday in one of their worst single-day declines in years after US President Donald Trump named former Federal Reserve governor Kevin Warsh to lead the central bank.
\nGold fell 12% from its January 29 peak of roughly\u00a0$5,600 per ounce to\u00a0around $4,800, marking its steepest one-day loss in more than a decade, although it is still up about 65% year-on-year. Silver, which had far outpaced gold\u2019s gains over the past year, sank more than 30% to under $80 an ounce, its worst drop since 1980. The rout wiped out more than $7.4 trillion from gold and silver prices in 24 hours, roughly equivalent to a quarter of the US economy.
\nBoth metals had recently surged\u00a0on fears the Fed could lose its independence and be forced to hold rates artificially low to help finance government debt. Analysts say Friday\u2019s selloff was triggered after Trump \u2013 who repeatedly attacked Fed chair Jerome Powell for refusing to cut rates \u2013 named Warsh as the next Fed chair.<\/p>\n
\u00a9\u00a0 Google screenshot <\/p>\n
Although Warsh was previously hawkish on interest rates, echoing Powell\u2019s concerns that premature cuts could stoke inflation, he has recently shifted tone, saying Trump was \u201cright to be frustrated\u201d by the slow pace of rate cuts.<\/p>\n
Read more<\/p>\n
Trump reveals Fed boss nominee<\/p>\n
While there is still uncertainty over how Warsh would steer policy \u2013 and with his nomination pending Senate confirmation \u2013 analysts say the pick stripped out the \u201cinflation panic\u201d premium from the precious-metals rally, as markets took it as a signal the Fed would remain independent and prioritize price stability over political pressure.
\nAnalysts also said the announcement triggered a long-overdue correction, with months of uninterrupted gains leaving both metals technically overbought and elevated prices offering traders an attractive exit, amplifying selling once sentiment turned.
\nDespite the sharp pullback, many forecasts for safe-haven assets remain bullish, with analysts saying the core drivers of the 2025 rally \u2013 geopolitical tensions, persistent inflation risks, trade frictions tied to Trump\u2019s tariff policies, and the expanding US debt burden \u2013 remain intact.<\/p>\n
READ MORE: The monetary system is broken and gold knows why<\/p>\n
The rally ahead of Friday\u2019s crash gave Russia major windfall\u00a0gains, with gold holdings up more than $216 billion \u2013 nearly matching the $300 billion in sovereign assets frozen in the West. Analysts at JPMorgan and Goldman Sachs say central banks may view the current correction as an opportunity to further increase bullion reserves at lower prices.<\/p>\n","protected":false},"excerpt":{"rendered":"
Kevin Warsh\u2019s nomination is seen as a catalyst that triggered profit-taking and technical selling after an extended rally in precious metals Gold and silver prices plunged on Friday in one…<\/p>\n","protected":false},"author":1,"featured_media":27792,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[4,6,3],"tags":[],"class_list":["post-27791","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-environment","category-politics"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/mongolianews.mn\/index.php?rest_route=\/wp\/v2\/posts\/27791","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mongolianews.mn\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mongolianews.mn\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mongolianews.mn\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mongolianews.mn\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=27791"}],"version-history":[{"count":0,"href":"https:\/\/mongolianews.mn\/index.php?rest_route=\/wp\/v2\/posts\/27791\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mongolianews.mn\/index.php?rest_route=\/wp\/v2\/media\/27792"}],"wp:attachment":[{"href":"https:\/\/mongolianews.mn\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=27791"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mongolianews.mn\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=27791"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mongolianews.mn\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=27791"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}