Gold and silver prices swung sharply as investors pulled back from safe-haven assets, while UK shares climbed to a new record. The shift followed renewed confidence in the future leadership of the US Federal Reserve, easing fears that had driven precious metals to recent highs.
Gold fell by as much as 8% before recovering part of its losses, ending the day still significantly lower. Silver also dropped sharply, extending heavy losses from late last week before stabilising. The easing in metals prices helped lift risk sentiment, pushing the FTSE 100 above 10,300 points for the first time.
Precious metals had surged in recent weeks amid geopolitical tensions and concerns over central bank independence. However, markets reversed course after Donald Trump said he would nominate Kevin Warsh, a former Federal Reserve governor, as the next Fed chair, reassuring investors that monetary policy would remain credible.
The change in sentiment rippled across markets. Industrial metals weakened, oil prices fell on signs of easing geopolitical tensions, and bitcoin recovered modestly but remained well below previous highs. US equities opened higher and the dollar strengthened against major currencies.
Despite the recent sell-off, analysts said the move appeared to be a correction from crowded positions rather than a fundamental shift, noting that gold and silver remain sharply higher than a year ago
