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Gold and silver prices plunge as rally goes into reverse - FT
Platinum and copper also fall as Trump picks Warsh as next Fed chair
Gold and other metals prices plunged on Friday, as the nomination of Kevin Warsh as Federal Reserve chair punctured a blistering rally that has also sent silver, copper and platinum to record highs this week.
The yellow metal, which had soared to nearly $5,600 on Thursday, plummeted as much as 8 per cent on Friday to $4,957 per troy ounce. The price recovered slightly to trade 5 per cent lower at $5,134, continuing a rollercoaster ride that has propelled gold to fresh records as investors seek haven assets amid global turmoil and inflation fears.
The sharp pullback rippled across precious metals on Friday, with silver dropping 11 per cent and platinum falling 10 per cent.
“It is classic ‘top of the market’ behaviour,” said Tom Price, commodities analyst at Panmure Liberum. “There is confusion and uncertainty. Everyone is looking for clarity.”
The news overnight that US President Donald Trump was likely to nominate Warsh as the next Fed chair boosted the dollar. The appointment was confirmed by Trump on Friday morning.
