Gold and silver prices suffered sharp losses after US President Donald Trump nominated former Federal Reserve governor Kevin Warsh to lead the central bank, prompting investors to lock in profits following a prolonged rally in precious metals.
Analysts say the move eased fears that the Federal Reserve would face political pressure to cut rates, removing some of the inflation-driven premium that had boosted prices and triggering heavy technical selling in markets that were already seen as overbought.
Despite the steep correction, many analysts believe long-term support for precious metals remains due to ongoing geopolitical tensions, inflation risks, and concerns over rising global debt levels.
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