Gold prices drop sharply after 10-week rally, silver also plunges amid Fed nomination news

Gold prices declined sharply on Friday, ending a sustained rally that lasted nearly ten weeks. As of 1830 GMT, the ounce price of gold stood at approximately $4,775, marking a daily drop of around 11%. Despite the pullback, gold remains up roughly 88% over the past 12 months and about 19% since the start of the year, bolstered by ongoing geopolitical tensions, trade uncertainties, and interest rate cuts by major central banks.

Silver and Broader Market Context

Silver experienced an even steeper decline, falling over 33% to $76.1 per ounce, though it maintains a 12-month gain of 255.6%. The US dollar showed modest recovery after the Federal Reserve decided to keep interest rates unchanged on Wednesday, though it remained poised for a second consecutive weekly decline. Market sentiment was also influenced by President Donald Trump’s announcement on Friday that he has selected former Federal Reserve governor Kevin Warsh as his nominee for the next Fed chair, describing him as potentially “one of the GREAT Fed Chairmen, maybe the best.”

Fed Nomination and Political Hurdles

Trump’s nomination of Warsh, announced on his Truth Social platform, may face a challenging confirmation process. Some Republican senators have vowed to block any Fed nominations until the Justice Department completes an investigation into the central bank’s renovation of its Washington headquarters, adding uncertainty to the leadership transition at a sensitive time for monetary policy.