Precious metals trading brought relief Monday as gold and silver recovered from steep losses that had rattled financial centers worldwide. Gold advanced from an 8% drop to $4,465 per ounce, climbing to $4,700 by afternoon despite posting a 3.5% decline. Recent trading had witnessed the metal near $5,600 per ounce.
The silver market demonstrated similar resilience, recovering from a 7% fall following Friday’s catastrophic 30% plunge to stabilize at $79.60 per ounce. These movements in precious metals contributed to a landmark achievement for Britain’s flagship stock index, which crossed the 10,300 threshold for the first time, closing at 10,341 with an intraday peak of 10,345.
Both metals had been setting consecutive records as market participants pursued protective assets amid escalating international conflicts and fears surrounding Federal Reserve political independence. The market shift initiated Friday when the administration announced Kevin Warsh, a former Fed governor respected for his central banking expertise, as its choice for chairman. Following Senate confirmation, Warsh will assume the role in May.
Trading analysts attribute the decline to investor approval that monetary policy won’t be compromised by political considerations. Wealth Club’s Susannah Streeter noted that Warsh’s substantial Federal Reserve background indicates he won’t bow to pressure, prompting widespread exits from safe-haven positions. The turbulence extended beyond precious metals to industrial commodities including platinum and copper.
Broader financial markets showed mixed signals, with cryptocurrency bitcoin gaining 1.8% while staying under $80,000, and oil retreating 4% to $65.24 per barrel on easing geopolitical tensions. Market observers at Jefferies noted the selloff eliminated overcrowded speculative positions, while both metals preserve exceptional gains compared to twelve months ago, with gold up 65% and silver surging more than 120%.