Market Overview - Spot silver experienced a significant decline, dropping as much as 16.6% on Thursday after briefly recovering above $90 an ounce in early Asian trading. Spot gold also fell, decreasing by as much as 3.5% in volatile trading conditions [1][7]. - The sentiment across various asset classes, including regional equities and metals, has turned negative, indicating fragile market conditions and creating a feedback loop amid low liquidity [1][7]. Recent Trends in Precious Metals - Precious metals had previously surged due to speculative momentum, geopolitical tensions, and concerns regarding the independence of the US central bank. However, this rally abruptly ended last week, with silver experiencing its largest daily drop ever and gold its most significant decline since 2013 [2][7]. - Analysts from Standard Chartered Plc noted that price volatility is expected to continue until there is more clarity on monetary policy. They indicated that some of the recent volatility is due to investors redeeming holdings in exchange-traded products, but structural drivers for precious metals remain strong, suggesting a potential recovery [6][7]. Federal Reserve Policy Implications - The market is currently assessing the implications of Kevin Warsh's nomination as Federal Reserve chair. President Trump indicated that he would not have nominated Warsh if he had shown a desire to increase interest rates, suggesting that the Fed is likely to lower rates again, which would benefit precious metals that do not yield interest [3][7].