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Gold Sinks Up to 12%, Silver 30% in Rout After Warsh Pick for Fed

A dollar rebound tied to the Fed pick triggered forced deleveraging across crowded, thin markets.

Overview

  • Gold fell roughly 8–12% to about $4,700–$4,900 and silver plunged 25–35% to around $75–$85 after notching record highs a day earlier.
  • The slide coincided with President Donald Trump nominating Kevin Warsh as Fed chair, a move that strengthened the dollar and lifted yields, pressuring non‑yielding metals.
  • Thin liquidity, heavy leverage and cascading margin calls amplified the drop, with Cboe gold and silver volatility gauges spiking to multi‑year extremes.
  • The shock rippled across assets as U.S. equities fell and crypto derivatives saw hundreds of millions in long liquidations, reflecting a broader risk‑off reset.
  • Bitcoin held relatively steadier near $82,000 on Friday versus metals but later dipped below $80,000 as risk appetite remained fragile.