Precious metals prices, which had surged in recent days on market concerns, are free-falling today, a sign that investors appear reassured about the independence of the US central bank (Fed) with the nominee chosen by the president Donald Trump for its leadership.

The gold price was down to $4,915.52 an ounce (down 8.54%) at around 7.15pm (GMT). The price of silver fell by 21.40% to 90.9411 dollars an ounce.

Trump announced earlier that he is nominating Kevin Wears, a former central bank board member, to head the Fed.

Speculation in previous days surrounding this appointment had driven gold and silver prices higher.

“Markets see a more conventional nominee, who is not just an instrument of Trump, putting the brakes on speculation around gold” because “it could restore confidence in the Fed’s independence,” summarised Neil Wilson, an analyst at Saxo Markets.

The other potential candidates, Kevin Hassett and Rick Ryder, were thus eliminated from contention for the position. Wears is “a strong supporter of Fed independence” and that will end doubts about whether the Fed’s independent policy will continue, he added.