Gold and silver saw historic drops as Trump’s Fed chair nomination strengthened the dollar, highlighting precious metals’ sensitivity to USD movements and policy changes.
On January 31, the US dollar index (DXY) surged 0.9%, its largest one-day gain since July, after Donald Trump nominated Waller as Federal Reserve chair. The stronger USD drove gold to its steepest daily drop in 40 years and triggered a record intraday plunge in silver, ending a year-long rally. Month-end portfolio rebalancing added to selling pressure. Despite the daily spike, the DXY still posted a 1.4% monthly decline, its weakest since August.