Gold Prices Drop Amid Market Focus on Trump’s Federal Reserve Pick Kevin Warsh
Global gold prices fell at the start of trading on Monday, following investors’ assessment of Kevin Warsh, President Donald Trump’s nominee for Federal Reserve Chair. According to reports, the price of gold per ounce reached around $4,552 in today’s trading. This comes after gold surged to an unprecedented level of $5,594.82 last Thursday, and the recent decline is seen as a correction following the rapid gains in previous days. Analysts say that although Warsh is expected to support rate cuts at some point if appointed, he is primarily known as a cautious figure in monetary policy. His focus on curbing inflation and criticism of quantitative easing programs and the Federal Reserve’s expanding balance sheet could, from the market’s perspective, strengthen the dollar and put downward pressure on gold prices. However, it remains unclear how quickly Warsh would move to cut rates if appointed, and whether he would pursue a significant shift in the Fed’s policy approach. Despite the current decline, some investors still expect the Federal Reserve to cut interest rates at least twice in 2026. Gold and other non-interest-bearing precious metals typically become more attractive in a low-rate environment, a factor that could support prices in the medium term.
