Silver plummets more than 16%, erasing a two-day recovery

Core Viewpoint - Silver and gold prices have sharply declined following a significant market downturn, with silver experiencing its largest daily drop ever and gold its most substantial decline since 2013 [3]. Group 1: Market Performance - Spot silver fell as much as 16.6%, briefly recovering above $90 an ounce before the drop [1]. - Spot gold decreased by as much as 3.5% during volatile trading [1]. - As of 11:18 a.m. in Singapore, silver was down 12.7% to $76.9495 an ounce, while spot gold was 2.1% lower at $4,859.20 an ounce [5]. Group 2: Market Sentiment - Sentiment across various asset classes, including equities and metals, has turned negative, indicating fragile market conditions [2]. - The recent volatility is attributed to investors redeeming holdings in exchange-traded products, although structural drivers for precious metals remain intact [5]. Group 3: Policy Implications - The market is reacting to the nomination of Kevin Warsh as Federal Reserve chair, with President Trump suggesting that the Fed is likely to lower interest rates, which could benefit precious metals [4]. - Analysts from Standard Chartered expect continued volatility until there is more clarity on monetary policy [5].