Editor’s Note
This article discusses the recent surge and volatility in gold and silver prices, driven by geopolitical factors and monetary policy expectations. It was written prior to the Federal Reserve’s latest policy decision and commentary.
Gold and silver prices hit all-time highs in late January, with gold exceeding $5,600 and silver surpassing $120, but have since experienced significant volatility in recent weeks.
The historic rise in precious metal prices was supported by geopolitical tensions with Venezuela and Iran, Trump tariffs, and interest rate cuts by the Federal Reserve (Fed). Subsequently, Trump nominated Kevin Warsh as the next Fed Chair, and his perceived greater caution towards rate cuts compared to other candidates led to a sharp drop in precious metal prices. Since then, silver and gold prices have fluctuated, with silver prices recently falling by 10% at one point.