LSE:IDS News 22 December 2025

February 2, 2026, 7:17 AM EST. U.S. President Donald Trump's nomination of Kevin Warsh as Federal Reserve Chair candidate has sparked a sharp market downturn. Gold prices tumbled nearly 2% to $4,771.25 per ounce, deepening Friday's historic rout where it fell more than 9%. Silver dropped 1% to $83.81 amid a 31% plunge last week. Oil prices fell about 5% following reports of U.S.-Iran talks. The sell-off reflects investor anxiety over potential Fed policy shifts and reduced liquidity, as stated by Charles-Henry Monchau of Syz Group. Despite current turmoil, JPMorgan strategist Grace Peters maintains a year-end gold price target of $6,500 per ounce, citing central bank buying and institutional support. Portfolios currently underweight gold, with a potential 5-10% allocation recommended as a geopolitical hedge.