Gold prices down over 10%, following Trump’s Fed statement

ISTANBUL

Gold prices, after continuously increasing for around 10 weeks, posted a sharp decline on Friday.

As of 1830GMT, the ounce price of gold saw $4,775 level, down around 11% day on day.

However, gold has surged roughly 88% over the past 12 months and about 19% since the start of the year, supported by heightened trade and geopolitical tensions as well as interest rate cuts by major central banks.

Silver prices also plummeted by over 33% to $76.1 per ounce. Its 12-month surge was at 255.6%.

The Fed's decision on Wednesday to keep interest rates constant helped the dollar recover from multi-year lows, but it remained on the verge of a second consecutive weekly fall.

US President Donald Trump announced Friday that he has picked former Federal Reserve governor Kevin Warsh as his nominee for the next Fed chair, saying he will be “one of the GREAT Fed Chairmen, maybe the best.”

“I am pleased to announce that I am nominating Kevin Warsh to be the CHAIRMAN OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM,” Trump wrote on his Truth Social platform.

The confirmation process could prove difficult, however, as some Republican senators have pledged to block any Fed nominations until the US Justice Department completes an inquiry into the central bank’s renovation of its Washington headquarters.