Gold, silver prices tumble as investors soothed by Trump's Fed pick

LONDON: Gold and silver prices dived on Friday and European stock markets climbed, while Wall Street opened just into the red with investors reassured by US President Donald Trump's pick to take over as head of the Federal Reserve.
The precious metals, viewed as safe-haven investments, had already begun sliding on reports, later confirmed, that Trump had nominated former Fed official Kevin Warsh to replace Jerome Powell as chair of the US central bank.
Trump confirmed his choice on Friday on Truth Social.
'I have known Kevin for a long period of time and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best', Trump wrote on his social media platform.
'On top of everything else, he is 'central casting', and he will never let you down'.
Kathleen Brooks, research director at XTB trading group, said the 'interesting pick... may give the market some hope that Fed independence will be preserved'.
Trump's personal attacks on Fed boss Jerome Powell — set to depart in May — have fuelled widespread fears among investors that the central bank's policy independence is under threat, potentially posing an inflation risk to the US economy.
Precious metals prices tumbled on Friday after surging in recent days when investors sought a safe haven over doubts about Trump's policies.
Gold was down seven per cent to $5,072 an ounce after reaching a record high of $5,595.47 on Thursday.
Silver, which on Thursday reached an all-time peak above $120 an ounce, shed 15 per cent meanwhile in sliding to $101 an ounce.
Financial markets have endured a rollercoaster ride this week as traders weathered a weaker dollar, Trump's threats against Tehran, the president's resumption of tariff threats and a possible US government shutdown.