Silver tumbles as Trump selects Kevin Warsh to lead the Federal Reserve

Sharp Decline in Silver Prices After Fed Chair Nomination News

Silver coins and bars displayed at a bullion dealer in Warsaw, Poland. (Photo by Damian Lemanski / Bloomberg via Getty Images)

The value of silver experienced a significant drop on Friday, following President Donald Trump's announcement that he intends to nominate economist Kevin Warsh as the next chair of the Federal Reserve.

By late afternoon, spot silver had fallen over 37%, reaching approximately $84.63 per troy ounce. The precious metals market operates nearly around the clock.

This sharp decline abruptly ended silver's impressive surge over the past year. Market experts suggest that many investors decided to cash in on their gains, anticipating that the rally may have reached its peak.

Despite the steep losses seen on Friday, silver remains more than 150% higher compared to the same period last year.

Gold prices also slipped during Friday's trading session, though the decrease was less dramatic than silver's. Shortly before 5 p.m. ET, gold was down about 11%, trading near $4,864 per troy ounce.

Over the last year, gold has also seen substantial growth, as investors sought out precious metals as a safeguard against economic and market volatility. Even after Friday's setback, gold is still up more than 70% year-over-year.

At the same time, the U.S. dollar strengthened on Friday, reversing a downward trend that had intensified earlier in the week, when the currency suffered its worst single-day drop since April 2025.

The simultaneous sell-off in safe haven metals and the rising dollar suggest that investor confidence is rebounding. This renewed optimism may be linked to the perception that Warsh would bring valuable experience to the Federal Reserve.

Known for his hawkish stance on monetary policy, Warsh typically resisted lowering interest rates during his previous tenure at the Fed, favoring a more cautious approach to economic stimulus.

However, over the past year, Warsh has shifted his position somewhat, aligning himself more closely with Trump's administration by criticizing current Fed policies and expressing a willingness to consider rate cuts.

Major stock indexes, including the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average, all ended Friday with modest losses, as investors also reacted to an unexpectedly large increase in the Producer Price Index.