Gold prices tumbled on Friday after market chatter suggested the Federal Reserve could shift toward tighter policy under new leadership, triggering a stronger dollar and a broad retreat across precious metals.
Despite the drop, bullion remained poised for its biggest monthly jump in more than four decades as investors continued to seek protection from global uncertainty.
Spot gold was down about 4.2% at roughly $5,173 an ounce in early London trading, after earlier losses approached 6%. The metal had reached an all-time peak near $5,595 in the previous session.
Even with the setback, prices have climbed over 20% this month, marking a sixth consecutive monthly increase and the strongest monthly performance since 1982.
The selloff also hit silver and platinum, both sliding more than 10%, as the dollar advanced following reports that President Donald Trump is preparing to nominate Kevin Warsh as the next Federal Reserve chair, according to Bloomberg News.
Traders said the prospect of a more policy-tightening central bank leadership cooled enthusiasm for risk-sensitive assets and triggered profit-taking after an extended rally that had pushed technical indicators to extreme levels.
