“As markets absorbed the likely appointment of Kevin Warsh—a more hawkish, Trump aligned nominee—to lead the Federal Reserve, precious metals suffered a sharp flash crash. The move also highlighted the shifting currency landscape as investors looked to find safe-havens away from metals. With Warsh set to take office in May 2026, a new test of the Fed–market dynamic is approaching. Here’s what this means for currencies and precious metals.The metals crash was caused by forced selling, not weaker fundamentals, which may create a buying opportunity. Investors are looking beyond metals to diversify away from the USD, turning to currencies like CHF, JPY, AUD, and NOK. When metals fell, investors quickly moved to currency hedges instead, showing how fast money can shift in uncertain markets.The for precious metals. Prices plummeted at an unprecedented pace as those who fuelled the amazing ascent started to sell. Silver stole the show, dropping more than 25% for its largest one day decline ever.“
Morten W. Langer
