Khaberni - Gold fell by more than 4% on Friday due to rumors about the possible presidency of a monetary policy hawk at the Federal Reserve, yet the precious metal remains on track to achieve its strongest monthly gains since 1980 as investors turn to safe-haven assets amid ongoing geopolitical and economic tensions.
As of 0323 GMT, gold in spot transactions dropped 3.9% to $5183.21 per ounce after previously falling 5%. Gold reached a previously unattained level of $5594.82 in the last session.
Gold's gains exceeded 20% so far this month, marking an increase for the sixth consecutive month, in the largest monthly rise since January 1980.
American futures for gold delivery in February dropped 2.7% to $5176.40 per ounce on Friday.
"Therefore, choosing a Fed chair who may be less inclined towards monetary easing and the rebound of the dollar all contributed to the decline in the precious metal's price," said Tim Wuoter, chief trading analyst at K.M.C.
President Donald Trump said he intends to reveal his nominee for the chair of the Federal Reserve on Friday, succeeding Jerome Powell.
The dollar recovered from its lowest levels in several years, partly supported by the decision on Wednesday to keep US interest rates unchanged, but it is headed for losses for the second consecutive week.
A rising dollar increases the cost of gold priced in US dollars for holders of other currencies. The markets still expect two interest rate cuts in 2026.
In other precious metals, the spot price of silver plunged 5.7% to $109.55 per ounce after peaking at $121.64 in the previous session. The metal has gained 56% so far this month on track to achieve its best monthly performance ever.
Platinum lost 5.3% to $2489.31 per ounce after reaching an all-time high of $2918.80 on Monday, while palladium increased by 5.8% to $1890.25.
