Gold and Silver Markets Bounce Back After Historic Selloff on Central Banking Announcement

Monday’s trading session witnessed significant recovery in precious metals after a violent downturn that had rattled investors worldwide. Gold prices advanced from an 8% plunge to $4,465 per ounce, climbing to $4,700 though still posting a 3.5% decline. Last week’s trading had seen the yellow metal approaching $5,600.
Silver markets followed comparable patterns, recovering from a 7% fall after Friday’s punishing 30% drop to reach $79.60 per ounce. The partial recovery in metals prices helped propel Britain’s premier equity index to new records, surpassing 10,300 for the first time and settling at 10,341 points after touching 10,345 intraday.
Both precious metals had been achieving successive peaks as traders pursued protection from rising international tensions and uncertainty regarding Federal Reserve political independence. The reversal commenced Friday when the administration unveiled Kevin Warsh as its Fed chair nominee, a former governor known for his expertise and institutional knowledge. Warsh is set to take the helm in May following Senate confirmation.
Market experts characterize the selloff as investor relief that political loyalty won’t override economic expertise at the central bank. According to Susannah Streeter at Wealth Club, Warsh’s extensive Federal Reserve experience indicates resistance to external pressure, triggering the major repositioning away from safe-haven assets. Pepperstone’s Michael Brown described the Friday movement as a complete “meltdown in the metals space.”
Energy markets and cryptocurrencies reflected changing sentiment, with bitcoin recovering 1.8% while remaining below $80,000, and oil prices falling 4% to about $65.24 per barrel on easing geopolitical tensions. Analysts explained the movement cleared extremely crowded trading positions, with metrics falling substantially, while both metals retain exceptional annual gains of 65% for gold and over 120% for silver, with major banks maintaining positive outlooks.