Spot silver plunged below $75 per ounce, down 15% in Asian trading on Thursday, while gold fell 2% to $4,852 as a stronger US dollar weighed on precious metals.
The US dollar’s strength, with the index now near 98, is driving down demand for precious metals among international buyers.
The sharp drop extends a volatile stretch for silver, which reached highs near $120 per ounce last month before entering a steep correction. Over a three-day period in early February, prices fell by more than 35%.
Market volatility intensified after Kevin Warsh‘s nomination as Fed Chair dampened expectations of further monetary easing, which normally supports precious metals. Slower easing increases the opportunity cost of holding non-yielding assets such as gold and silver.
Trump made clear that Warsh would not have been picked if he favored raising rates, suggesting that the nominee, despite his reputation as a monetary hawk, may share his goal of lowering interest rates.
However, this has done little to calm markets as uncertainty over Fed leadership and the timing of rate cuts continues to keep markets under pressure.