During Friday's Asian trading session, precious metals prices declined as traders locked in profits following a sharp rally and the market assessed the potential implications of a leadership change at the Federal Reserve. Spot gold fell 3.9% to $5,161.91 per troy ounce, while spot silver dropped 5.0% to $109.97 per ounce. Both metals retreated from recent highs but remained near record levels. Market focus was largely centered on speculation about who President Trump would select to replace Jerome Powell as Chair of the Federal Reserve. Citing informed sources, media reports indicated that Trump's advisors had been informed that the President was expected to nominate Kevin Warsh for the role of Fed Chair. Warsh is a former Fed insider who has since become a critic of the central bank. Analysts at Maybank suggested that Warsh's appointment could be perceived as bearish for metals markets, as it implies a potentially slower and less forceful approach to monetary easing. Interest rate cuts typically benefit non-yielding assets like gold. "Warsh has long been a critic of ultra-loose monetary policy and is a former Fed governor, so markets are likely pricing in the expected impact of his appointment on the future policy path," stated the Maybank analysts. In commentary, Ahmad Assiri, a Research Strategist at Pepperstone, noted that gold prices have surged more than 20% since the start of the year, driven by the market's "clear expression" of unease regarding US policies on fiscal management, trade strategy, and overall global leadership. "Expecting a straight, uninterrupted line higher for gold is unrealistic, as such a move naturally encourages profit-taking and a temporary wait-and-see approach," Assiri added. Joni Teves, a precious metals specialist at UBS Global Research, indicated that while gold might face near-term pressure, its longer-term outlook remains positive. He said that concerns about Federal Reserve independence, escalating geopolitical tensions, and broader political uncertainties all provide support for the safe-haven metal. However, Teves suggested that maintaining a cautious stance might be prudent for now, as increased short-term speculative interest is triggering volatility. "In our view, the short-term price action is starting to look overstretched, and the risk of a medium-term correction is rising," he said. Elsewhere, several Asian stock markets followed gold and silver lower. The Hang Seng Index in Hong Kong fell 1.7%, while China's Shanghai Composite Index was last down 0.7%. Australia's S&P/ASX 200 index declined 0.65%, and the Taiwan Weighted Index dropped 0.9%. In later trading, the US dollar strengthened against most G10 and Asian currencies. According to FactSet data, the ICE US Dollar Index was last up 0.3% at 96.56.