Gold and silver plummet! Trump speaks out on the Federal Reserve's rate cut!

On February 5th, after a surge at the opening, gold and silver prices suddenly plummeted in the market. As of the time of writing, spot silver has plunged over 15%, and spot gold has also fallen more than 3%.

In terms of news, Trump has once again spoken out about the Federal Reserve’s rate cuts. According to First Financial, U.S. President Trump stated on February 4th that he believes the Fed lowering the benchmark interest rate in the United States is “nothing to doubt.”

During an interview with American media, Trump said he believes his nominated successor to the Fed Chair, Kevin Wirth, understands his stance on wanting to lower interest rates. When asked if Wirth is aware of his desire for rate cuts, Trump responded, “I think he is aware, and I believe that even without my request, he plans to do so.” He also added, “I mean, if he came to me and said ‘I want to raise rates,’ he definitely wouldn’t get the position, absolutely impossible.”

Guojin Securities research report analysis states that the gold and silver markets will become even more unpredictable: indeed, the long-term logic of the dollar’s credit and other factors has not changed, but the underlying capital flows, asset preferences switching, and leverage trading have never stopped. Over time, frequent global black swan events have led to a phase of reduced risk appetite, rising inflationary pressures in the U.S. have tightened rate cut expectations, and the transmission of broad AI costs has accelerated significantly. These three factors may resonate at some point; historical volatility levels in gold and silver could also occur in other major asset classes.

(Source: Securities Times)