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Gold and Silver Tumble on Warsh Fed Pick, Then Partially Stabilize

Warsh's nomination reset rate expectations, spurring a stronger dollar that pressured metals.

Overview

  • Gold traded between roughly $4,400 and $4,800 on Monday after sliding from a $5,595 record late last week, a drop of about one‑fifth.
  • Silver fell to an intraday low near $71 before rebounding toward the low‑$80s after a record one‑day drop on Friday, leaving it about 40% below its $121.65 peak.
  • Traders pointed to President Donald Trump’s selection of Kevin Warsh for Fed chair as the trigger that reduced odds of imminent U.S. rate cuts and lifted the dollar.
  • CME raised margin requirements for gold and silver futures, forcing some leveraged positions to unwind and amplifying the selloff.
  • The turmoil briefly spilled into equities, with the DAX opening lower before recovering, while analysts said central‑bank buying and geopolitical risks still underpin medium‑term support.