Gold and silver prices have been on a rollercoaster ride, hitting record highs and then plummeting in January. Geopolitical tensions and Fed chair nominations have caused swings in the market. Despite the volatility, gold and silver remain up substantially year-over-year, prompting investors to reassess their exposure to precious metals.

Gold hit a historic peak of $5,594.82 per ounce, then dropped to $4,403.24 before bouncing back to $4,895.69. Silver also saw a record 27% drop in one day, followed by an 8.6% increase to $86.30 per ounce. The swings are leaving investors feeling overwhelmed by the market fluctuations.

Geopolitical instability, including the U.S. invasion of Venezuela and threats to invade Greenland, has contributed to the rise in precious metal prices. The uncertainty in global markets has led investors to seek the stability of gold and silver as a safe haven investment.

The nomination of a new Federal Reserve chair and concerns about interference with the Fed’s independence have impacted the market. President Trump’s nomination of Kevin Warsh caused investors to shift away from gold and silver, signaling confidence in the new chair.

Profit-taking by investors looking to capture gains and the subsequent rebound in prices have also influenced the market. Swings in the precious metals market impact retirement accounts, inflation hedging, and consumer product costs, highlighting the broader implications of these fluctuations.

Despite the recent volatility, gold is still trading at just under $5,000 per ounce, while silver is around $90 per ounce. Investors are advised to focus on long-term goals and not be swayed by short-term price movements in the market.

Read more at Yahoo Finance: Gold and silver prices are on a roller coaster. Here’s why it’s happening and what it means for your portfolio