Warsh Fed Chair Nomination: Dovish Pivot or Hawkish Reality? Gold Rebound 🚀📉
Trump's nomination of Kevin Warsh as next Fed Chair (announced Jan 30, Senate pending, May 2026 start) sent shockwaves through markets last week.
Warsh (ex-Fed Governor 2006–2011) is known as an inflation hawk who slammed "mission creep", but his recent takes hint at faster cuts if inflation cools — especially with Trump pushing growth.
Market reaction recap:
Friday hawkish fear: gold tanked -9–12% (~$4,745 low), silver -30%+, DXY modest up.
Today (Feb 3): strong dip-buy rebound +5–6%+ gold to ~$4,920–4,968 (live data), traders betting on dovish tilt.
My FA scenarios for the future:
Dovish lean → real yields drop → fiat holding costs more → gold rotation resumes (push toward $5,000+ or ATH >$5,600). Weaker USD helps risk assets & crypto.
Hawkish stance → inflation control priority → DXY >98, gold capped (~$4,500–$4,800 support), equities/crypto feel pressure if "Fed put" fades.
Volatility wildcard → Senate hearings (blocks possible), Trump pressure, Feb/March CPI/jobs → big swings short-term.
I'm currently long swing gold (XAUUSD/USDT) right after the announcement via Bitget TradFi (24/7 access meant no Monday gap wait). Small position, low leverage, stop ~$4,746 low — caught today's rebound nicely, sitting on decent unrealized gains.
But the big question: hold for dovish upside potential, or cut on hawkish risk? Classic macro uncertainty...
What's your take? Dovish gold rebound or hawkish cap ahead? Share your FA views, scenarios or setups in comments! 📈💰