Market News
Gold tumbles below $5,000, dragging other metals lower - REUTERS
By Pablo Sinha
Jan 30 (Reuters) - Gold prices tumbled by more than 7% to break below the $5,000 mark on Friday as the dollar strengthened on the imminent appointment of a new U.S. Federal Reserve Chair, though the safe-haven metal remained set for its biggest monthly gain since 1999 after chalking up multiple record peaks.
Other precious metals also dropped sharply as profit-taking kicked in.
Spot gold lost 7.5% to $4,992.05 an ounce by 0947 GMT. U.S. gold futures for February delivery fell 6.4% to $4,985.
Gold scaled a record peak of $5,594.82 on Thursday and is still on track for a more than 15% gain this month, heading for a sixth straight monthly gain and largest since 1999.
"I still believe several gold-supportive drivers remain in place, but after the strong rally in recent weeks a consolidation is healthy," said UBS analyst Giovanni Staunovo, adding that the likely nomination of a new Fed chair is applying immediate pressure on prices.
U.S. President Donald Trump said on Thursday that he will reveal his pick for the next Fed chair on Friday, with former Fed Governor Kevin Warsh seen as a frontrunner. Warsh has pushed for a smaller Fed balance sheet, contrasting with Trump's inclination towards looser monetary policy.
