Gold set for strongest monthly gain since 1982

Spot gold shed 4.2% to $5,172.80 per ounce after dropping more than 5% earlier

Gold slipped more than 4% on Friday ‌on rumours the U.S. central bank could get a more hawkish chair, but was still on track for its strongest monthly gain since 1982 as investors flocked to the safe haven amid lingering geopolitical and economic strains.

Spot gold shed 4.2% to $5,172.80 per ounce, as of 0716 GMT, after dropping more than 5% earlier. It ‌scaled a record high of $5,594.82 on Thursday.

Prices have risen more than 20% ​so far in January, heading for a sixth straight monthly gain and the largest monthly advance since 1982.

U.S. gold futures for February delivery declined 3% to $5,163.90 per ounce on Friday.

So, a potentially less ‍dovish Fed Chairman pick, a rebound in the dollar and gold giving way to overbought conditions have contributed to the decline in the price of the precious metal, KCM Chief Trade Analyst Tim Waterer said.

U.S. ⁠President Donald Trump said on Thursday he intends to announce his pick to replace central bank Chair ‍Jerome Powell on Friday, with speculation intensifying that the nod will go to former central bank Governor Kevin Warsh.

Rumours ‌that ‌Kevin Warsh will replace Jerome Powell as Fed Chair have weighed on gold during Asian trade, said Matt Simpson, a senior analyst at StoneX.

The dollar recovered from multi-year lows, supported in part by the central bank’s decision on Wednesday to leave interest rates unchanged, but was poised for a ⁠second straight weekly decline.

A ⁠stronger dollar makes ​dollar-priced gold more expensive for overseas buyers. Markets still expect two interest rate cuts in 2026.

Gold exports from Switzerland to the UK, home to the world’s largest over-the-counter gold trading hub, climbed to their highest since ‍August 2019, customs data showed on Thursday.

The Hang Seng Gold ETF soared more than 9% on its trading debut in Hong Kong in the previous session.