Trump’s pick of ‘respected central banker’ Kevin Warsh as Fed chair seen as catalyst for sell-off as investors sell safe haven assets
Trump’s pick of ‘respected central banker’ Kevin Warsh as Fed chair seen as catalyst for sell-off as investors sell safe haven assets
Gold and silver prices have plunged, as a “meltdown” in the metals market deepened and rattled stock exchanges around the world.
Gold prices tumbled by 8% to $4,465 an ounce on Monday, ending a run of record highs that took it to nearly $5,600 just last week, before recovering some ground. Silver fell by 7%, after a 30% slump on Friday.
Both metals had hit successive highs in recent weeks, as investors sought safe haven assets amid rising geopolitical tensions and fears around the independence of the US Federal Reserve.
Donald Trump triggered the sell-off on Friday, after he said he would nominate Kevin Warsh, a former Fed governor and respected central banker, to be the next chair of the Federal Reserve.
Warsh will succeed Jerome Powell when his term ends in May, if confirmed by the Senate. Trump said on Friday that he had not asked Warsh to commit to rate cuts.
