Gold price tumbles after Trump names pick to lead US Federal Reserve
The slide in the price of gold bullion has continued, with the rare metal fetching $US4738 an ounce at 10.30am AEDT, a drop of 2.5 per cent.
Late week's rally ran out of steam after US President Donald Trump picked Kevin Warsh to become the new Federal Reserve chair.
Gold reached about $US5600 during last Thursday after climbing to a then-record $US5000 on Monday.
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The price of gold bullion has fallen since last week's record jump.. Getty Images/iStockphoto
Capital.com senior market analyst Kyle Rodda told The Australian Financial Review today the sell-off was the biggest since the 1920s.
"Ultimately, the markets have welcomed the Warsh nomination. He's seen as experienced, competent and representing a respect by the Trump administration of merit and aptitude over loyalty and servility," Rodda said.
"The apparent respect for institutional integrity from the Trump administration helped spark a recovery in the US dollar and the collapse in precious metals on the basis that the central bank will be guided by a credible person."
Warsh could bring about sweeping changes at a central bank that dominates the global economy and markets like no other.
He would replace current Fed Reserve chair Jerome Powell when his term expires in May.
Trump chose Powell to lead the Fed in 2017 but this year has relentlessly assailed him for not cutting interest rates quickly enough.
The retreat from gold has also spurred falls in the prices of other precious metals.
Silver has crashed by more than 36 per cent from its peak last week.
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