Today, the market experienced a sharp decline in gold and silver prices, reaching new lows. During trading, gold fell by 6.3%, while silver dropped by 11.9%. Just a few days ago, both metals were considered a reliable investment, but their devaluation has now come as an unexpected blow to many investors.
The main reason for the sell-off was U.S. President Donald Trump's announcement of Kevin Warsh's nomination for the head of the Federal Reserve. Warsh, known for his tough stance on inflation, signaled to the markets that the weakness of the dollar might be coming to an end. This led to a strengthening of the American currency, which negatively affected the prices of gold and silver, traded in dollars.
Moreover, the political factor compounded an already overheated market. Over the past year, gold prices have risen significantly, and silver has shown particularly rapid growth, attracting speculators, including from China. Precious metals were increasingly viewed not as a safe haven but as a means for quick profit. When prices began to fall, market sentiment changed instantly: mass sell-offs in the absence of buyers caused a sharp decline in quotes.
