MARKET NEWS

Silver prices have fallen by the most on record after Donald Trump’s pick for the next Federal Reserve chairman eased fears about US inflation.

The precious metal fell by as much as 30pc on Friday, its biggest single day fall in history, after the President announced Kevin Warsh as his nomination to lead the central bank.

As of 7.30pm in London, silver was down around 26pc at $83.81 per Troy ounce.

Silver reached a record high of more than $121 on Thursday amid concerns that Trump was preparing to install a pliant candidate at the Fed who would cut interest rates for him.

Mr Warsh is widely regarded as a credible, market-friendly candidate who has advocated for higher interest rates in the past and defended the Fed’s independence.

Gold was also rocked by the news of his nomination, falling by almost 10pc to $4,850 an ounce, its largest intraday drop since the 2008 financial crisis.

Bullion surged to nearly $5,600 on Thursday, after surpassing $5,000 for the first time on Monday and rising above the $4,000 threshold in a record first in October.

While precious metals plunged, the dollar strengthened just days after the US currency sank to a four-year low.

US stocks fell as investors judged that interest rate cuts were now less likely. The benchmark S&P 500 was down 0.3pc, while the Dow Jones Industrial Average declined 0.4pc and the tech-heavy Nasdaq Composite slid 0.7pc.