Precious metals retreated sharply after President Donald Trump's selection of Kevin Warsh as Federal Reserve chair signaled shifts in monetary expectations. Gold and silver markets experienced a dramatic sell-off as investors reassessed expectations for U.S. monetary policy.

Gold futures plunged by double-digit percentages from near-record levels, with spot prices falling below key psychological thresholds. Silver saw even steeper declines from recent peaks, marking one of the most significant one-day downturns for precious metals in decades.

Traders interpreted the nomination of Kevin Warsh, a former Federal Reserve governor, as indicative of a possible shift toward monetary discipline, bolstering the U.S. Dollar Index. A firmer dollar makes dollar-denominated assets less attractive to international buyers.

Market commentators noted previous upward momentum had been driven by expectations of looser monetary policy and safe-haven demand. With a central bank leadership perceived as more focused on stability, those dynamics shifted, punctuating extraordinary volatility in commodity markets.