Global commodity prices have recorded significant declines, especially in gold, silver, and oil, following the election of Kevin Warsh as chairman of the Fed.

Commodity markets suffered considerable losses on Monday, especially in the case of gold, silver, and oil, following the appointment of Kevin Warsh as chairman of the Federal Reserve (Fed). Gold fell by 9%, reaching its lowest level in the last two weeks, while silver recorded a decline of over 13%. Massive sell-offs were influenced by the perception that Warsh might adopt a more aggressive monetary policy. Additionally, CME Group raised margin requirements for futures contracts on metals, leading to reduced liquidity and accelerated sales.

Alongside precious metals, oil dropped by nearly 5.5%, while copper fell by almost 5%. Improved relations between the US and Iran contributed to easing fears regarding oil supply. Analysts suggest that the current decline could be a temporary correction rather than a structural change in prices. Furthermore, energy markets and industrial metal markets are facing difficulties due to reduced demand, especially ahead of the Lunar New Year celebrations in China.