Monday witnessed precious metals markets recovering from one of their most severe selloffs in recent times. Gold prices climbed from an 8% crash to $4,465 per ounce, reaching $4,700 by afternoon though still down 3.5%. The yellow metal had been trading close to $5,600 in previous sessions.
Silver exhibited equally dramatic movements, advancing from a 7% decline after Friday’s shocking 30% drop to settle at $79.60 per ounce. The partial recovery in metals prices supported Britain’s blue-chip stock index in achieving a historic milestone, breaking through 10,300 for the first time and settling at 10,341 after hitting 10,345 during the day.
Recent trading had seen both precious metals reaching successive peaks as investors flocked to safe investments amid mounting global tensions and concerns about Federal Reserve autonomy. The reversal began Friday when the White House revealed Kevin Warsh as its Fed chair nominee, a former governor known for his expertise and institutional knowledge. If confirmed, Warsh will replace the current chairman when his term ends in May.
Financial strategists view the selloff as positive confirmation that partisan influence won’t dominate economic policy at the central bank. According to Susannah Streeter at Wealth Club, Warsh’s deep Federal Reserve experience suggests he’ll maintain independence, triggering major repositioning away from defensive assets. Pepperstone’s Michael Brown described the Friday movement as a complete “meltdown in the metals space.”
Energy markets and cryptocurrencies reflected changing sentiment, with bitcoin recovering 1.8% while remaining below $80,000, and oil prices falling 4% to about $65.24 per barrel on reduced geopolitical concerns. Analysts at Jefferies explained the movement cleared overcrowded positions, with speculative metrics dropping substantially, while Deutsche Bank maintains its $6,000 gold forecast despite recent turbulence.