By bizn_fun 
Gold prices had been soaring to record highs in recent days, partly driven by fears Trump would choose a Fed chairman who would cave into his demands to cut interest rates, leading to a falling dollar and rising inflation. Buying gold is a strategy to protect against those things.
But, as reports emerged the president would nominate Kevin Warsh, who is seen as a relatively safe bet compared with other candidates, the upward pressure on gold prices eased.
The slump even saw gold fall below $5,000 an ounce at one stage on Friday.
However, gold prices are still around 65% higher than this time last year because of ongoing geopolitical tensions, current tariffs and further tariff threats from Trump, and ongoing conflicts around the world. It means the shine of gold and silver feels more attractive than ever for investors seeking “safe haven” assets.
One of gold’s biggest appeals is its relative scarcity.
Nicholas Frappell, global head of institutional markets at ABC Refinery, told the BBC: “When you own gold, it’s not attached to the debt of somebody else like a bond is or an equity where the performance of a company will drive performance.
“It’s a really good diversifier in a very uncertain world.”
Friday’s gold price volatility shows its value can fall almost as quickly as it rises, like all traded commodities.