Gold suffered its biggest drop in 40 years on Friday, while silver recorded a record intraday plunge, marking a sharp reversal of the rally that had driven gold prices to record highs. The year-long investor frenzy for precious metals has shocked experienced traders and led to unusual price volatility. Investors had been flocking to the metals market after Trump signaled tolerance for a weaker dollar, but the dollar's rebound dampened their sentiment. Traders viewed Warsh as the most steadfast inflation fighter among the final candidates, increasing expectations of monetary policy support for the dollar and weakening the support for dollar-denominated gold. "Trump's nomination of Warsh as the next Fed chair is good for the dollar and bad for precious metals," said Akash Doshi, global head of gold and metals strategy at State Street Investment Management. "This could also be exacerbated by month-end portfolio rebalancing—as shorting the dollar and going long on precious metals has been the consensus macro trade for the past two to three weeks." (Jinshi)