Silver Suffers Sharpest One-Day Fall Since 1980 as Gold Slides on Fed Nomination News

Silver and gold prices plunged on Friday after news that Donald Trump is expected to nominate Kevin Warsh as the next chair of the Federal Reserve, easing investor concerns over the central bank’s independence and pushing the U.S. dollar higher.

Silver recorded its worst single-day decline in more than four decades. Silver futures fell 31.4% to settle at $78.53 per ounce, marking the metal’s steepest daily drop since March 1980. Spot silver was last down around 28% at $83.45 per ounce, trading near session lows.

Gold prices also dropped sharply. Spot gold fell about 9% to $4,895.22 per ounce, while gold futures declined 11.4% to settle at $4,745.10.

Market participants said the sell-off was initially triggered by reports surrounding Warsh’s nomination, which reduced fears that the Federal Reserve could come under political pressure. Losses accelerated during U.S. afternoon trading as investors rushed to take profits after last year’s strong rally in precious metals.

The rally in the U.S. dollar added further pressure. The dollar index was last trading about 0.8% higher, making gold and silver more expensive for overseas buyers.

Matt Maley, equity strategist at Miller Tabak, said the scale of the move suggested forced selling. He noted that silver had become a popular trade among short-term investors, leading to heavy leverage in the market. As prices fell sharply, margin calls likely intensified the sell-off.

Markets had previously expected National Economic Council Director Kevin Hassett to emerge as the leading candidate to replace current Fed Chair Jerome Powell. However, Warsh became the front-runner in prediction markets in recent days.

In a note published Friday, Evercore ISI Vice Chairman Krishna Guha said markets were reacting to Warsh as a more hawkish candidate, helping to stabilize the dollar and weaken demand for precious metals.

Gold and silver had both surged in 2025, rising 66% and 135% respectively, supported by geopolitical tensions, central bank buying and concerns over U.S. monetary policy.

Mining stocks and exchange-traded funds linked to silver also fell sharply. Shares of Coeur Mining dropped 17%, while silver-focused ETFs recorded some of their worst daily losses on record.

Despite the sell-off, some analysts said longer-term demand for precious metals could remain supported by geopolitical risks and concerns over global reserve diversification.