Gold and Silver Prices Plunge as Trump’s Fed Pick Signals Stronger Dollar

Precious metals saw a sharp sell-off following record highs in December and January, triggered by political shifts in U.S. monetary policy. Gold prices on the Comex exchange stabilized between $4,660 and $4,670 per ounce on February 2, a significant drop from the $5,600 peak reached on January 29. Overall, gold has retreated approximately 18% from its recent highs.

Silver experienced an even more dramatic decline, losing nearly a third of its value as prices fell from over $120 to approximately $79 per ounce within days. Market analysts attribute the slump to Donald Trump’s announcement of Kevin Warsh as his nominee for Federal Reserve Chair. Investors viewed the move as a catalyst for a stronger dollar, diminishing the appeal of safe-haven assets.

The downturn extended to the cryptocurrency market, with Bitcoin sliding below $75,000. This marks the fourth consecutive month of decline for the digital asset, with experts warning of a potential further retreat toward the $70,000 support level.

N.Tebrizli