Well, the party had to end sometime. After a searing rally in 2025, the bellwether precious metals of gold and silver have had a not-so-shiny start to 2026. Following the Trump administration's decision to appoint the relatively hawkish Kevin Warsh as the new Federal Reserve chairman after Jay Powell's tenure ends in May, there was an abrupt halt to the bullish freight train in gold and silver prices.
Dips of 2-4% for gold and a much sharper 33% in a single trading session for silver were widely attributed to a rebounding U.S. dollar and rising Treasury yields as investors adjusted to the prospect of a Warsh-led Fed, which many fear will be less inclined to provide the aggressive rate cuts that fueled the 2025 rally.
