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(Bloomberg) -- Gold slumped as a report the Trump administration is preparing to nominate Kevin Warsh for Federal Reserve chair boosted the dollar, but the metal was still set for its best month since the 1980s.

Bullion retreated as much as 4.8% on Friday, having been up earlier, continuing the wild swings that interrupted a record-breaking rally on Thursday. A gauge of the dollar rose as much as 0.5%, making precious metals more expensive for most buyers. Silver tumbled as much as 9.4%.

President Donald Trump is expected to name Warsh as his nomination for Fed chair, Bloomberg News reported. The former Fed governor has a longstanding reputation as an inflation hawk, but has aligned himself with the president in recent months by arguing publicly for lower interest rates. Trump said he would announce his nominee on Friday morning US time.

Gold’s move “validates the cautionary tale of fast-up, fast-down,” said Christopher Wong, a strategist at Oversea-Chinese Banking Corp. While reports of Warsh’s nomination were a trigger, a correction was overdue, he said. “It’s like one of those excuses markets are waiting for to unwind those parabolic moves.”

Even after the pullback, gold is still up around 19% in January, closing in on its sharpest monthly gain since 1982. The jump in silver has been eye-watering, with the white metal up 48% so far this year.

The Trump administration’s upending of the global order — including the seizure of Venezuela’s leader, threats to annex Greenland and tariff threats against allies - has been a major driver. Most recently, Trump has been warning of a possible strike on Iran and saying he will put levies on any countries that provide oil to Cuba.

Renewed attacks on the Fed have also revived worries about its independence, leading to dollar weakness and feeding into the debasement trade, where investors avoid currencies and sovereign bonds over fiscal fears. A meltdown in Japan’s debt market has also fanned these concerns, helping to spur the dizzying gains in precious metals that have also been exacerbated by a lack of liquidity.

Meanwhile, the risk of another US government shutdown was avoided after Trump and Senate Democrats reached a tentative deal. The White House is continuing to negotiate with Democrats on placing new limits on immigration raids that have provoked a national outcry.

Gold fell 4.3% to $5,146.58 an ounce as of 4:13 p.m. in Singapore. Silver tumbled 8.5% to $105.8566. The Bloomberg Dollar Spot Index rose 0.2%, but is still down 1% for the week. Platinum and palladium also slumped.