Summary
Gold and silver prices dropped sharply after President Trump announced Kevin Warsh as the new head of the Federal Reserve. Despite this fall, gold and silver prices remain higher than they were at the start of the year.
Key Facts
- President Donald Trump chose Kevin Warsh to lead the Federal Reserve.
- Gold prices fell by 9% to $4,901 per ounce on Friday.
- Silver prices dropped by 27% to $83.35 per ounce.
- The decline is the largest daily drop for both metals since the 1980s.
- Analysts see the drop as a result of market momentum and previous high gains.
- Prior to the drop, gold was up more than 14% for the year and silver was up 22%.
- Investors had previously bought gold and silver amid concerns over Fed independence.
- Warsh is viewed as a credible choice, easing some investor concerns.
