Group 1 - The nomination of Kevin Walsh to the Federal Reserve has triggered significant volatility in the global precious metals market, leading to historic declines in spot gold and silver prices, with silver experiencing a maximum intraday drop of 36% and closing down 26.42% at $85.259 per ounce, while gold fell over 12% to below $4700 per ounce, marking its worst single-day drop in 40 years, closing down 9.25% at $4880 per ounce [2][3] - The market perceives Walsh's nomination as a direct catalyst for the precious metals crash, aligning with the notion that currency trends dominate short-term fluctuations in gold and silver prices, as emphasized in the analysis of monetary policy and its impact on these assets [3][4] - Walsh's complex monetary policy stance, which includes both hawkish and dovish elements, may continue to influence short-term volatility in the gold and silver markets, suggesting a potential balance in Federal Reserve policies that could mitigate extreme market reactions [4][6] Group 2 - Despite the recent sharp declines, the long-term value foundation of gold and silver remains intact, driven by their scarcity and industrial demand, particularly in sectors like AI and photovoltaics, which are expected to support silver's long-term value [5][6] - Historical patterns indicate that significant price surges in gold and silver are often followed by substantial corrections, yet current global central bank gold purchases provide structural support for gold prices, reflecting a long-term trend in capital flows and the evolution of the monetary system [6] - The volatility in silver prices is attributed to its smaller market size and lower liquidity, making it more susceptible to short-term policy shifts and capital flows, while its industrial applications are expected to drive demand growth in the coming years [5][6]