On Friday, gold and silver prices experienced significant declines while European stock markets closed the week on a high note. In contrast, Wall Street saw a pullback as investors reacted to US President Donald Trump’s appointment of Kevin Warsh as the new Federal Reserve Chair.

The sharp drop in precious metal prices, often considered safe-haven assets, started when reports emerged regarding Warsh’s nomination. The announcement, confirmed by Trump on social media, indicated a shift in leadership at the Federal Reserve, which has made investors rethink their strategies.

Trump emphasized his belief in Warsh’s potential, stating, “He will go down as one of the GREAT Fed Chairmen, maybe the best.” This endorsement aimed to instill confidence among investors, although it also raised questions about the future independence of the Federal Reserve.

Kathleen Brooks, research director at XTB, commented on Warsh’s selection as an “interesting pick” that might assure markets of Fed independence. This assurance comes amid concerns triggered by Trump’s personal critiques of the outgoing Fed Chair, Jerome Powell, who is set to leave in May.

The Impact on Precious Metals and Financial Markets

On Friday, gold fell dramatically, at one point dropping 12% and retreating below $5,000 an ounce after hitting nearly $5,600 just a day earlier. Silver followed suit, plummeting around 30% from its all-time high of above $120 an ounce to approximately $82.

This week’s market activity has been tumultuous, driven by a weaker dollar, geopolitical tensions involving Iran, and Trump’s renewed tariff threats. Despite early optimism spurred by strong earnings from tech giants like Meta and Samsung, concerns rose after Microsoft’s challenges with its AI investments.

Global Market Trends

As the week wrapped up, Asian markets reflected substantial losses following Wall Street’s tech-led retreat. Fears of inflated valuations and a potential market bubble have become prevalent among traders, raising questions about the sustainability of recent gains.

Moreover, the dollar strengthened in response to Warsh’s nomination. According to Forex.com analyst Fawad Razaqzada, the appointment could be seen as positive for the dollar, as it mitigates some risks related to a potentially dovish Fed appointment. However, ongoing policy uncertainty linked to Trump’s tariff strategies continues to pressure the dollar’s recovery.

Company Performance and Economic Indicators

In individual company performances, Verizon shares soared by 11.8% following its announcement of significant increases in mobility and broadband subscriptions, marking its highest quarter since 2019.

Closing Market Figures

As of the last trading session, here are the key market figures:

• Dow: DOWN 0.4% at 48,892.47
• S&P 500: DOWN 0.4% at 6,939.03
• NASDAQ Composite: DOWN 0.9% at 23,461.82
• FTSE 100: UP 0.5% at 10,223.54
• CAC 40: UP 0.7% at 8,126.53
• DAX: UP 0.9% at 24,538.81
• Nikkei 225: DOWN 0.1% at 53,322.85
• Hang Seng Index: DOWN 2.1% at 27,387.11
• Shanghai Composite: DOWN 1.0% at 4,117.95

In conclusion, the nomination of Kevin Warsh as Fed Chair has had a considerable impact on market dynamics. Investors continue to navigate a complex landscape marked by fluctuating asset prices and global uncertainties.