Gold and Silver Prices Plunge as Markets React to Trump Fed Chair Pick
Precious metals meltdown sees gold drop 8 percent and silver fall 30 percent as investors exit safe haven assets
The sell-off appears to have been triggered by President Trumps announcement of Kevin Warsh as his pick for Federal Reserve chair, with investors viewing the respected central banker as likely to maintain tighter monetary policy.
Gold had reached record highs of nearly 5,600 dollars just last week before the dramatic reversal. The precious metals decline has coincided with the ongoing cryptocurrency crash, with bitcoin stabilizing around 77,000 dollars after a weekend that saw 290 billion dollars wiped from crypto market capitalization.
The combined commodities sell-off represents one of the most significant market moves of 2026, with safe haven assets across the board facing selling pressure as investors reassess their positions in light of the expected hawkish Fed leadership.
Analysis
Why This Matters
The simultaneous crash in gold, silver, and cryptocurrency markets suggests a fundamental shift in investor sentiment about inflation hedges and safe haven assets.
Background
Gold had been on an extended bull run, reaching all-time highs above 5,500 dollars as investors sought protection from inflation and geopolitical uncertainty.
Key Perspectives
Analysts point to Kevin Warshs reputation as a fiscal hawk who would maintain higher interest rates, making yield-bearing assets more attractive relative to precious metals.
What to Watch
Market participants will be closely watching Warshs confirmation hearings and any signals about the future direction of Fed policy.