Precious metals markets demonstrated recovery Monday after experiencing one of their most severe selloffs in recent times. Gold climbed back from an 8% crash to $4,465 per ounce, reaching $4,700 by afternoon despite closing down 3.5%. Last week’s trading had witnessed the metal approaching $5,600 per ounce.
Silver markets exhibited similar recovery patterns, advancing from a 7% decline after Friday’s punishing 30% drop to stabilize at $79.60 per ounce. The metals’ partial rebound supported Britain’s premier stock index in achieving a milestone, breaking through the 10,300 level for the first time and settling at 10,341 points after an intraday high of 10,345.
Both precious metals had been climbing to consecutive records as traders sought protection from rising international tensions and uncertainty regarding Federal Reserve political independence. The market shift initiated Friday when the administration unveiled Kevin Warsh as its Fed chair nominee, a former governor known for his expertise and institutional knowledge. Warsh is scheduled to assume leadership in May following Senate confirmation.
Financial strategists view the selloff as positive confirmation that partisan considerations won’t dominate monetary policy. Susannah Streeter from Wealth Club emphasized that Warsh’s deep Federal Reserve background suggests he’ll maintain independence, prompting widespread repositioning away from defensive assets. The turbulence extended to industrial metals, with platinum and copper also experiencing declines.
Broader market movements included bitcoin’s 1.8% advance though still trading below $80,000, far from its $125,000 peak last year, and oil prices falling 4% to about $65.24 per barrel on reduced geopolitical concerns. Analysts note the selloff cleared out speculative positions, with positioning metrics dropping substantially, while both metals retain exceptional annual gains of 65% and 120% respectively.