Gold Prices Slide as Hawkish Fed and Strong Dollar Weigh on Bullion 
Asian Stocks Rally as Japan and South Korea Reach Record Highs on US-Iran Peace Deal 
Gold Prices Rebound on U.S.-Iran Peace Deal Optimism Despite Fed Rate Hike Signals 
Asian Currencies Stabilize as Dollar Holds Near Two-Month High After Fed Hawkish Signal 
Japan Signals Readiness to Intervene as USD/JPY Nears 161 Amid Yen Weakness 
German Auto Suppliers Turn Bearish as Investment and Jobs Shift Overseas 
US Stock Futures Slip After Wall Street Rally Fueled by US-Iran Deal and Chipmaker Surge 
Trump Questions USMCA Renewal as Trade Talks Continue 
Canada, British Columbia Launch $5 Billion Infrastructure Partnership to Boost Housing, Transit, and Healthcare 
China’s AI Manufacturing Boom Masks Weak Consumer Economy, Citi Says 
Trump Says No Hormuz Strait Tolls During 60-Day Iran Ceasefire 
Dollar Surges After Fed Holds Rates Steady, Signals Potential Tightening Ahead 
Canada Imposes 10% Tariff on Canned Vegetable Imports to Protect Domestic Industry 
Asian Stocks Surge as Oil Prices Fall and Strong US Dollar Weighs on Markets 
Dollar Hits One-Month High as Hawkish Fed Outlook Boosts Greenback 
BOJ Signals More Rate Hikes as Inflation Risks Rise Amid Energy Price Pressures 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
Gold and silver prices suffered a dramatic selloff on Friday after President Donald Trump nominated former Federal Reserve Governor Kevin Warsh to replace Jerome Powell as Fed chair, easing fears about the central bank’s independence and triggering a sharp rebound in the U.S. dollar. The move sparked one of the steepest single-day declines ever seen in precious metals, abruptly ending a massive rally that had pushed prices to record highs earlier in the week.
By 16:16 ET, spot gold had plunged nearly 10% to around $4,850 per ounce, marking its worst daily performance since 1983. Gold futures also slid sharply, while silver prices collapsed more than 27%, logging their worst day on record as spot silver fell to near $84 per ounce. The selloff underscored how sensitive gold and silver markets have become to shifts in U.S. monetary policy expectations and Federal Reserve leadership.
According to José Torres, senior economist at Interactive Brokers, Warsh is widely viewed as a monetary policy hawk who favors higher real interest rates and a smaller Fed balance sheet. However, his recent alignment with Trump’s preference for lower borrowing costs may have helped secure his nomination. Markets interpreted the pick as a sign that the Fed could maintain credibility and resist excessive political pressure, strengthening the dollar and reducing the appeal of safe-haven assets like gold and silver.
The rally in the greenback reversed the so-called “Fed independence trade” that had fueled a surge in precious metals. Gold had briefly approached $5,600 per ounce and silver had neared $122 earlier in the week, driven by fears of political interference, a weaker dollar, and heightened geopolitical tensions. With those concerns easing, investors rushed to lock in profits, accelerating the downturn. Copper prices also retreated after recently hitting all-time highs.
Despite the brutal selloff, gold and silver remained firmly on track for strong monthly gains. Gold was still up about 12–15% for January, while silver led the metals complex with gains of nearly 18%. Ongoing global geopolitical risks, uncertainty over U.S. fiscal health, and fluctuating interest rate expectations continued to support precious metals demand, even as Friday’s events reminded investors just how volatile the gold and silver markets can be.
