Published Fri, Jan 30, 2026 · 06:30 PM
[LONDON] Gold prices tumbled by more than 7 per cent to break below the US$5,000 mark on Friday (Jan 30) as the US dollar strengthened on the imminent appointment of a new US Federal Reserve Chair, though the safe-haven metal remained set for its biggest monthly gain since 1999 after chalking up multiple record peaks.
Other precious metals also dropped sharply as profit-taking kicked in.
Spot gold lost 7.5 per cent to US$4,992.05 an ounce by 0947 GMT. US gold futures for February delivery fell 6.4 per cent to US$4,985.
Gold scaled a record peak of US$5,594.82 on Thursday and is still on track for a more than 15 per cent gain this month, heading for a sixth straight monthly gain and largest since 1999.
“I still believe several gold-supportive drivers remain in place, but after the strong rally in recent weeks a consolidation is healthy,” said UBS analyst Giovanni Staunovo, adding that the likely nomination of a new Fed chair is applying immediate pressure on prices.
US President Donald Trump said on Thursday that he will reveal his pick for the next Fed chair on Friday, with former Fed governor Kevin Warsh seen as a frontrunner. Warsh has pushed for a smaller Fed balance sheet, contrasting with Trump’s inclination towards looser monetary policy.
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The US dollar rose on Friday, clawing back some of this week’s slide to a four-year low. A stronger US currency makes US dollar-priced gold more expensive for overseas buyers. Physical gold premiums in India rose to their highest in more than a decade on strong investment demand ahead of a likely duty increase. Premiums in China jumped after a pickup in investment and jewellery demand.
“We see gold dipping far lower than today but see a recovery and an average of US$5,375 for 2026, reaching a peak of US$6,400 during the fourth quarter,” said independent analyst Ross Norman.
Among other precious metals, spot silver was down 14.1 per cent at US$99.77 an ounce after hitting a record US$121.64 on Thursday. The metal has surged 42 per cent this month, on track for its best monthly performance.
“Although a significant part of the move in the rise in silver has been based upon sound fundamentals, there was clearly a speculative excess within the market and I think that’s getting blown off,” Norman added.
Spot platinum lost 15.7 per cent to US$2,216.55 an ounce after hitting a record high of US$2,918.80 on Monday. Palladium, meanwhile, plunged 13.4 per cent to US$1,737.50. REUTERS
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