Gold prices fell the most in over two weeks after President Trump cast doubt on nominating Kevin Hassett as the next Federal Reserve chair, unsettling markets about the future of U.S. monetary policy. The dollar firmed and rate-cut expectations eased, adding pressure to bullion. Meanwhile, silver tumbled as Chinese regulators cracked down on speculative trading, though it remains up significantly for the week. The search for a new Fed chief continues, with uncertainty likely to keep gold supported but vulnerable to shifting rate outlooks.
Major Points:
Gold dropped sharply (up to 1.7%) after President Trump expressed reluctance about appointing Kevin Hassett—a perceived dove—as the next Federal Reserve Chair, creating fresh uncertainty over the central bank’s leadership.
Market expectations shifted: Traders slightly reduced bets on two Fed rate cuts this year following Trump’s comments, boosting the dollar and Treasury yields while pressuring gold.
Fed leadership in flux: The selection process remains unclear, with dovish contender Hassett and hawkish former Fed Governor Kevin Warsh both seen as possible picks, influencing monetary policy outlook.
Silver plunged up to 6% after Chinese exchanges cut position limits and restricted high-frequency trading, cooling a rally that had been driven largely by speculators in China.
Broader context: Gold’s 2025 rally had extended into 2026 amid attacks on Fed independence and easing expectations, but uncertainty over future rate cuts now weighs on prices.
Other metals and data: Platinum and palladium also declined, while recent U.S. economic data led several Fed officials to signal a potential pause in rate cuts.
