#GoldOnTheRise
Gold prices fall sharply after rumours of Trump's new Fed pick
Silver and other precious metals followed gold lower after reaching historic peaks this month.
By Tiger bilal
Jan 30, 2026
Global economic strains continue to support gold as a safe haven.$SOL
Gold slid more than 4 percent on Friday on rumours the Federal Reserve could get a more hawkish chair, but was still on track for its strongest monthly gain since 1980 as investors flocked to the safe haven amid lingering geopolitical and economic strains.
Spot gold lost 3 percent to $5,232.57 per ounce, as of 0520 GMT, after falling more than 5 percent earlier. It scaled a record high of $5,594.82 on Thursday.
Prices have risen more than 20 percent so far in January, heading for a sixth straight monthly gain and the largest monthly advance since 1980.
US gold futures for February delivery fell 1.8 percent to $5,225.0 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.
US President Donald Trump said on Thursday he intends to announce his pick to replace Fed Chair Jerome Powell on Friday, with speculation intensifying that the nod will go to former Fed 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.