NEW YORK:&nbsp;Financial markets swung Friday after US President Donald Trump named his choice to lead the Federal Reserve, lowering the prices of&nbsp;<a href="https://www.pakistantv.com/article/gold-soars-towards-5600-as-trump-rattles-sabre-over-iran" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">gold</a>&nbsp;and silver while lifting European stocks. The precious metals, viewed as safe-haven investments, had already begun sliding on reports&nbsp;that Trump had nominated former Fed official Kevin Warsh to replace Jerome Powell as chair of the US central bank. <a href="https://www.pakistantv.com/article/gold-silver-hit-records-and-stocks-fall-as-trump-fans-trade-fears" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">Trump</a>&nbsp;announced his choice Friday on social media, saying that Warsh, a former Morgan Stanley investment banker and Fed governor, &quot;will go down as one of the GREAT Fed Chairmen, maybe the best.&quot; Kathleen Brooks, research director at XTB trading group, said the &quot;interesting pick...may give the market some hope that Fed independence will be preserved.&quot; Trump&#39;s personal attacks on Fed boss Jerome Powell &ndash; set to depart in May &ndash; have fueled widespread fears among investors that the central bank&#39;s policy independence is under threat, potentially posing an inflation risk to the US economy. A roller-coaster week Precious metals prices tumbled on Friday after surging in recent days when investors sought a safe haven over doubts about Trump&#39;s policies. Gold fell as much as 12% at one point, retreating below $5,000 an ounce after hitting a record high near $5,600 on Thursday. Silver, which Thursday reached an all-time peak above $120 an ounce, shed around 30% to about $82 an ounce. Financial markets have endured a roller-coaster ride this week as traders weathered a weaker dollar, Trump&#39;s threats against&nbsp;<a href="https://www.pakistantv.com/article/gold-soars-towards-5600-as-trump-rattles-sabre-over-iran" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">Tehran</a>, the president&#39;s resumption of tariff threats and a possible US government shutdown. Asian stock markets closed out the week with some hefty losses following Thursday&#39;s tech-led retreat on Wall Street on renewed concerns over vast investments in artificial intelligence. Healthy earnings from Meta, Samsung and SK Hynix provided much cheer early in the week but Microsoft was punished over worries its costly AI program might not result in financial gains. There are fears that firms&#39; valuations may be a little too stretched and that&nbsp;<a href="https://www.pakistantv.com/article/afghan-markets-remain-stocked-but-poverty-leaves-22-million-unable-to-buy" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">markets</a>&nbsp;could be in a bubble, having soared in recent years to record highs on the back of a tech-fueled rally. The dollar pushed higher on Warsh&#39;s nomination. &quot;Most currency strategists would argue that his nomination may be good news for the dollar, which can price out some risks of a more dovish pick,&quot; said <a data-fr-linked="true" href="//Forex.com" style="font-size: 18px; color: rgb(0, 115, 230);">Forex.com</a>&#39;s Fawad Razaqzada. &quot;However, for as long as policy uncertainty hangs over the US economy with Trump&#39;s tariff theatrics, the dollar debasement narrative is likely to hold back the greenback from making a meaningful comeback.&quot; Among individual companies, Verizon surged 11.8% as it reported its highest quarter of mobility and broadband subscription increases since 2019.

Gold minted bars are pictured at a gold dealer in Madrid, on January 30, 2026. (AFP)

Banking

Markets shifted after Trump named new Federal Reserve chair nominee, with prices of precious metals lowering and European stocks lifting. 

Gold, silver prices dip after Trump names new Federal Reserve nominee 

Web Desk

ISLAMABAD: Gold prices soared to historic highs Wednesday,&nbsp;with the precious metal trading above $4,500 per ounce as investors sought refuge amid escalating geopolitical tensions and mounting concerns over global economic stability. Price of gold reached $4,495.34 per ounce, according to the World Gold Council, while COMEX gold futures climbed to $4,521.20, up $15.50 or 0.34% from Monday&#39;s close of $4,516.70. The contract hit an intraday high of $4,555.10 before settling back. The increase&nbsp;represents a dramatic shift in the gold market, driven by what the World Gold Council describes as &quot;shifting global fundamentals&quot; rather than speculative trading. Central banks emerged as major buyers for the third consecutive year, with China, Turkey, Poland and India collectively purchasing more than 1,000 tonnes annually. The buying spree reflects a strategic move by governments to diversify reserves away from US dollar-denominated assets. Western institutional investors also returned to gold after years of exodus from the market. Gold-backed exchange-traded funds recorded more than $77 billion in inflows during 2025, adding over 700 tonnes to global holdings by year-end, according to World Gold Council data. The market development organization, whose quarterly reports serve as the industry standard used by central banks, the International Monetary Fund and major financial institutions, cited multiple factors behind gold&#39;s rally. Ongoing conflicts in Eastern Europe and the Middle East, combined with recent US naval actions involving Venezuelan-linked tankers, have intensified demand for assets perceived as safe stores of value. Trade policy uncertainty and tariff disputes have further amplified gold&#39;s appeal as a hedge against systemic economic shocks. Growing doubts about US fiscal stability, with national debt surpassing $40 trillion, have prompted investors to question the long-term role of Treasury securities in their portfolios. Gold has emerged as what analysts call the &quot;preferred diversifier&quot; in an increasingly uncertain financial landscape. The Federal Reserve&#39;s anticipated rate cuts throughout 2026 have also improved gold&#39;s relative attractiveness. Lower interest rates reduce the opportunity cost of holding non-yielding bullion compared to bonds. Other precious metals posted gains alongside gold. Silver rose 1.66% to $72.315 per ounce, while platinum jumped 2.14% to $2,336.40. Palladium edged up 0.52% to $1,966.00, according to COMEX trading data. The World Gold Council characterized 2025&#39;s price performance as a fundamental market shift rather than a temporary spike, stating that gold has &quot;reasserted its historic role as the ultimate store of value&quot; amid currency realignment and geopolitical volatility.

Business

Gold hits $4,500 per ounce as investors seek safety amid geopolitical tensions, central bank buying, and mounting US fiscal concerns.

Articles tagged with "gold prices"

Gold, silver prices dip after Trump names new Federal Reserve nominee

Gold soars past $4,500 as safe-haven demand hits record levels