Gold Drops $45 to $2,650 on Hawkish Fed Chair Appointment

Gold futures plummeted $45 (-1.7%) to $2,650 per ounce following President Trump's selection of Kevin Warsh as the next Federal Reserve Chair, triggering a broad risk-off sentiment across markets. The precious metal's sharp decline reflects market expectations that Warsh's leadership could bring a more aggressive approach to monetary tightening, strengthening the dollar and raising real yields. XAU/USD broke below key support at $2,670, accelerating losses as algorithmic selling kicked in. The move coincided with a broader market selloff, with equities and Bitcoin also experiencing significant declines. Technical indicators suggest oversold conditions in the near term, with immediate support at $2,635 (200-hour moving average). However, the fundamental shift in Fed expectations could cap any recovery attempts. Traders should monitor the $2,625 level as a critical support zone, below which further declines toward $2,600 become likely.