Gold fell more than four percent on Friday amid rumors that a hawkish candidate could be appointed to lead the US Federal Reserve. Despite the drop, the precious metal remains on track for its strongest monthly gain since 1980, as investors continue to seek safe-haven assets amid persistent geopolitical and economic tensions.

By 03:23 GMT, spot gold had fallen 3.9 percent to $5,183.21 per ounce, after sliding as much as five percent earlier in the session. The metal had touched a record high of $5,594.82 in the previous session.

Gold has gained more than 20 percent so far this month, extending its rally to a sixth consecutive month and marking its largest monthly increase since January 1980.

U.S. gold futures for February delivery fell 2.7 percent on Friday to $5,176.40 per ounce.

Gold (internet).

Tim Waterer, chief trading analyst at KMC, said that the prospect of a Federal Reserve chair less inclined toward monetary easing, along with a rebound in the dollar, had contributed to the decline in gold prices.

U.S. President Donald Trump said he plans to announce his nominee to succeed Jerome Powell as Federal Reserve chair on Friday.

The dollar rebounded from multi-year lows, partly supported by Wednesday’s decision to keep U.S. interest rates unchanged, though it remains on track for a second straight weekly loss.

A stronger dollar makes dollar-denominated gold more expensive for holders of other currencies. However, markets are still pricing in two interest rate cuts in 2026.

Among other precious metals, spot silver plunged 5.7 percent to $109.55 per ounce, after hitting a record high of $121.64 in the previous session. Despite the pullback, silver is up 56 percent so far this month and is on track for its strongest monthly performance on record.

Platinum fell 5.3 percent to $2,489.31 per ounce after touching an all-time high of $2,918.80 on Monday, while palladium climbed 5.8 percent to $1,890.25.