Overview
- Gold fell as much as 12.5% to just under $4,700 an ounce in U.S. trading, while silver dropped up to 30% to about $74 after hitting a record $121.65 the day before.
- The moves followed a rapid repricing of rate-cut expectations after President Trump named former Fed governor Kevin Warsh, who is viewed as more hawkish, to succeed Jerome Powell.
- The U.S. dollar strengthened and Treasury yields rose as markets inferred a less aggressive easing path, pressuring non-yielding precious metals.
- Commerzbank’s Thu Lan Nguyen cautioned that Trump continues to push for lower rates and the Fed may still respond, which could leave gold fundamentally supported.
- Recent gains in precious metals had been underpinned by geopolitical tensions, including U.S. threats toward Iran, and the single-day declines were described as among the largest this millennium.