Gold and silver prices plunge following Trump's Fed pick announcement

Gold and silver prices experienced a dramatic plunge on Friday. This decline followed significant gains throughout the year, fueled by concerns about the Federal Reserve's independence. The selloff was triggered by President Trump's nomination of Kevin Warsh to lead the Fed. Gold futures plummeted 9% while silver saw a 27% decrease, marking the largest daily declines in decades. Market analysts generally viewed the drop as an overdue correction in a market that had become overextended. The speed and severity of the decline, described in the text with the phrase "elevator down," surprised some analysts. High leverage and volatility amplified the selling pressure, creating a "powder keg". The appointment of Warsh, perceived as a credible policymaker, eased concerns over the Fed's independence, contributing to the selloff. Despite the losses, gold and silver are still performing well year-to-date. They currently outperform the S&P 500, Nvidia, and copper. This indicates the selloff did not erase the year's gains completely, but rather served as a price correction.