Gold fell 9.5% for its steepest daily drop since 1983, while silver slumped nearly 30% in a historic selloff after Trump’s Fed chair announcement.
NEW YORK: Gold plummeted on Friday, heading for its steepest single-day drop since 1983.
The selloff followed US President Donald Trump’s announcement of his choice for the next Federal Reserve chair.
Spot gold dropped 9.5% to $4,883.62 per ounce after hitting a record peak of $5,594.82 on Thursday.
READ MORE: Gold price soars to record high above $5,500 an ounce
US gold futures for February delivery settled 11.4% lower at $4,745.10.
Analysts described the sharp decline as a major profit-taking event.
“The market was due for a correction,” said Suki Cooper, global head of commodities research at Standard Chartered Bank.
She noted the selloff was triggered by a combination of the Fed chair announcement and broader macroeconomic flows.
Trump named former Federal Reserve Governor Kevin Warsh as his choice to succeed Jerome Powell in May.
Warsh is a frequent critic of the central bank.
Despite the plunge, gold remains on track for a more than 13% rise this month.
This marks the metal’s sixth consecutive monthly gain.
The US dollar index gained 0.7%, making dollar-priced gold more expensive for overseas buyers.
“January 2026 is done, (and) it will go down as the most volatile month in precious metals history,” said Nicky Shiels of MKS PAMP SA.
Shiels said gold at $4,600 and silver at $80 are reasonable downside targets to reset a more moderate bullish trajectory.
Spot silver slumped 27.7% to $83.99 an ounce after dropping as low as $77.72.
Prices were on track for their biggest daily drop on record based on data available through 1982.
The white metal hit a record high of $121.64 on Thursday and has surged more than 17% this month.
Spot platinum lost 19.18% to $2,125 an ounce.
Palladium plunged 15.7% to $1,682. – Reuters
