Today's Edition
LONDON (AFP)
Gold and silver prices dived on Friday and European stock markets climbed, while Wall Street opened just into the red with investors reassured by US President Donald Trump's pick to take over as head of the Federal Reserve.
The precious metals, viewed as safe-haven investments, had already begun sliding on reports, later confirmed, that Trump had nominated former Fed official Kevin Warsh to replace Jerome Powell as chair of the US central bank.
Trump confirmed his choice Friday on Truth Social.
"I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best," Trump wrote on his social media platform.
"On top of everything else, he is 'central casting,' and he will never let you down."
Trump's personal attacks on Fed boss Jerome Powell -- set to depart in May -- have fuelled widespread fears among investors that the central bank's policy independence is under threat, potentially posing an inflation risk to the US economy.
Precious metals prices tumbled on Friday after surging in recent days when investors sought a safe haven over doubts about Trump's policies.
Gold was down seven percent to $5,072 an ounce after reaching a record high of $5,595.47 Thursday.
Silver, which Thursday reached an all-time peak above $120 an ounce, shed 15 percent meanwhile in sliding to $101 an ounce.
Financial markets have endured a rollercoaster ride this week as traders weathered a weaker dollar, Trump's threats against Tehran, the president's resumption of tariff threats and a possible US government shutdown.
Asian stock markets closed out the week with some hefty losses following Thursday's tech-led retreat on Wall Street on renewed concerns over vast investments in artificial intelligence.
Healthy earnings from Meta, Samsung and SK Hynix provided much cheer early in the week but the positivity took a hit on Thursday after Microsoft announced a surge in spending on AI infrastructure and revived concerns that companies could take some time before seeing a return on their investments.
Among tech giants, Apple was down 1.4 percent with higher chips hitting margins while Meta was off two percent.
Oil prices regained their poise after an early fall on Friday
"The building tensions between Iran and the US have driven Brent crude prices to a six-month high," said Megan Fisher, assistant economist at Capital Economics.
