Gold and Silver Crash to Decades-Low Prices After Fed Chair Shock
Gold and silver prices suffered their worst losses in decades last week after a sudden market collapse. The sharp decline followed US President Donald Trump's nomination of Kevin Warsh as Federal Reserve chair in late January 2026. Investors and analysts are now questioning whether the metals will recover or face further drops in the coming months.
The sell-off wiped over 10% off gold's value and more than 30% from silver—its steepest fall since the 1980s. Volatility continued into Monday, leaving traders uncertain about the next move. While no official figures track the impact on global central bank reserves, the sudden crash has raised concerns across financial markets.
Experts warn against rushing to buy the dip. Katie Stockton, an analyst at Fairlead Strategies, predicts another eight or nine weeks of downward pressure for both metals. José Torres, chief economist at Interactive Brokers, also sees further risks ahead, describing the current climate as unstable for precious metals.
Market sentiment has shifted sharply against gold and silver. Nancy Tengler, CEO of Laffer Tengler Investments, now favours stocks as a more reliable long-term bet. Mark Malek, chief investment officer at Siebert Financial, shares this cautious stance, doubting a quick rebound. Meanwhile, Marcus Sturdivant Sr., managing partner at The ABC Squared, points to Trump's unpredictable economic policies as a key factor making short-term forecasts difficult.
The metals market remains on shaky ground after last week's historic drop. With analysts expecting prolonged weakness and little clarity on broader economic effects, investors are approaching gold and silver with heightened caution. The coming weeks will reveal whether the decline stabilises or deepens further.
