Biggest drop in gold and silver prices in years, dollar confidence restored by Trump’s new Fed nominee

Gold and silver prices plummeted on Friday, ending their massive run since early last year. The price of a troy ounce of gold (31.1 grams) fell by 10 percent in New York, while a troy ounce of silver fell by as much as 30 percent.

The price of gold fell to around $4,800. On Thursday, the price hit a new record high of nearly $5,600. Silver fell to around $80. These are the biggest single-day drops in years.

New Fed chairman

The dollar also strengthened, making gold and silver more expensive for foreign investors. US President Donald Trump nominated Kevin Warsh as the new chairman of the Federal Reserve. This eased concerns about the central bank’s independence, which supported the dollar. Warsh is a former governor of the Fed.

Gold and silver prices were previously driven by global trade tensions and geopolitical unrest. As a result, investors sought out perceived safe havens like gold and silver. Central banks also bought large quantities of gold. The World Gold Council, the gold industry organization, reported Thursday that global gold demand rose to a record level of 5,002 tons last year.

Other metals such as copper, platinum and palladium also fell in price on Friday.