Monday brought stabilization to precious metals markets after a historic downturn that had created widespread concern among investors. Gold prices climbed from an 8% crash to $4,465 per ounce, reaching $4,700 by afternoon despite posting a 3.5% decline. The yellow metal had been approaching $5,600 in previous trading.
Silver demonstrated comparable resilience, recovering from a 7% drop following Friday’s devastating 30% collapse to settle at $79.60 per ounce. These movements occurred as Britain’s blue-chip stock index achieved unprecedented heights, breaking through the 10,300 level for the first time and closing at 10,341 after touching 10,345 during trading.
Recent weeks had witnessed both metals climbing to successive highs as investors pursued safe havens amid rising geopolitical risks and concerns regarding Federal Reserve independence from political influence. The turnaround initiated Friday when the White House announced Kevin Warsh, a former Fed governor with distinguished credentials, as the nominee for chairman. If confirmed, Warsh will assume the role when the current term ends in May.
Financial strategists explain the selloff as investor approval of maintaining central bank independence. According to Susannah Streeter at Wealth Club, Warsh’s deep Federal Reserve background suggests he’ll maintain institutional independence, triggering major repositioning away from defensive assets. Pepperstone’s Michael Brown characterized the initial decline as a comprehensive “meltdown in the metals space.”
Broader financial markets showed mixed signals, with cryptocurrency bitcoin advancing 1.8% against the dollar while staying below $80,000, and oil retreating 4% to about $65.24 per barrel on easing tensions. Despite recent volatility removing speculative positions, precious metals maintain extraordinary annual performance, with gold up 65% and silver climbing more than 120%, while analysts at Deutsche Bank continue projecting gold will reach $6,000 this year.