Market Jitters: Gold Tumbles Amid Trump's Fed Chair Choice

The commodities market faced a significant downturn on Monday, driven by President Donald Trump's controversial selection of Kevin Warsh for the next U.S. Federal Reserve chairmanship. The decision sent gold, silver, oil, and industrial metals into a tailspin for a second consecutive session as investors reacted negatively.

Equity markets also felt the pressure as investors divested assets to cover losses in precious metals. Global stock indices dropped, with steep declines noted in Asia and Europe. The MSCI All-World index fell 0.5% on Monday, reflecting the third day of market weakness.

Market tensions were further evidenced by a rise in the VIX volatility index, while the strong U.S. dollar made commodities pricier in other currencies. Investor perceptions of Warsh as a hawkish Fed leader contributed to the selloff, seen particularly in gold and silver.