Gold prices tumbled sharply on Friday, heading for their steepest daily decline since 1983, while silver plunged close to 30 percent, putting it on course for the worst single day fall on record. The selloff followed renewed volatility across financial markets after United States President Donald Trump announced Kevin Warsh as his choice to lead the Federal Reserve. Spot gold fell nearly 10 percent to around $4,884 per ounce after touching a record high above $5,590 a day earlier. Futures prices also closed deeply lower, marking a dramatic reversal after weeks of strong gains that had pushed precious metals to historic levels amid global uncertainty and heavy investor inflows.
Market participants described the move largely as profit taking after an exceptionally volatile month. Analysts noted that expectations around monetary policy, movements in the dollar and shifting views on real yields combined to trigger a sharp correction. The US dollar strengthened on the day, rebounding from recent lows, which added further pressure on dollar denominated commodities making them more expensive for overseas buyers. Despite the sudden drop, gold remains on track for a strong monthly performance, having risen more than 13 percent in January, extending a run of consecutive monthly gains driven demand for safe haven assets.
Silver experienced even heavier losses, sliding more than a quarter in value after hitting record highs earlier in the week. The metal’s decline marked the largest daily fall on record based on available data, underscoring the extreme swings seen across the precious metals complex. Platinum and palladium also posted double digit losses, reflecting broad based selling. Analysts said prices may need to retreat further to establish a more stable base after January’s unprecedented volatility, which has been described as one of the most turbulent periods ever for precious metals markets.
