New York, January 30, 2026, 10:06 AM (EST) — Regular session
- Spot gold dipped briefly under $5,000 an ounce as the dollar strengthened following President Donald Trump’s choice of Kevin Warsh to head the Federal Reserve.
- The drop ended a record streak, yet bullion remains on track for its biggest monthly rise in decades.
- Traders are eyeing next week’s U.S. jobs and inflation reports for fresh signals on interest rates — and gold’s direction.
Gold prices plunged on Friday, dipping briefly below $5,000 an ounce after U.S. President Donald Trump announced Kevin Warsh, a former Federal Reserve Governor, as his pick for the next Fed chair. The news boosted the dollar and sparked a wave of profit-taking. By 12:57 GMT, spot gold was down 5.7% at $5,087.99, having touched a low of $4,957.54 earlier. Just the day before, it hit a record $5,594.82.
The pullback is significant because the gold rally was beginning to feel relentless. Investors rushed into the safe-haven metal throughout January but started selling off as hopes for steep U.S. rate cuts faded. “Generalist investors… are taking profits,” said Panmure Liberum analyst Tom Price. Saxo Bank’s Ole Hansen called the recent surge “highly speculative.” Reuters
Warsh’s nomination injects fresh uncertainty into a market that has priced in rate cuts. Trump, a longtime advocate for lower rates, plans to succeed Jerome Powell when his term expires in May. That transition is being closely scrutinized for its impact on Fed independence and future monetary policy.
In physical markets, strong buying in parts of Asia is bumping against the price shock. Indian dealers pushed premiums up to $121 an ounce above official domestic prices this week, bracing for a probable import-duty hike. Finance Minister Nirmala Sitharaman is set to unveil the 2026-27 budget on February 1. “Anticipating a duty hike… investors were paying a premium over record prices,” said Mumbai wholesaler Ashok Jain. Meanwhile, Peter Fung of Wing Fung Precious Metals noted a pickup in jewellery demand in China ahead of Lunar New Year. Reuters
Commodity-linked stocks weighed on Canada’s S&P/TSX Composite, which opened 1.53% lower Friday, as gold and oil prices fell following the Fed chair announcement.
The sharp sell-off highlights the dangers of crowded trades unraveling. Gold plunged up to 8% during the session before finding some footing. Meanwhile, certain exchanges are stepping in to curb overheated bets, signaling the threat of more forced liquidation if volatility remains elevated.
Investors are eyeing the upcoming U.S. labour report as a key near-term trigger. The Employment Situation for January drops February 6, with January’s CPI set for February 11 and producer prices on February 27, per the Bureau of Labor Statistics schedule. These numbers could swiftly shift rate forecasts and the dollar’s trajectory.
Traders are keeping an eye on the Fed’s favored inflation measure. The next U.S. Personal Consumption Expenditures price index drops February 20.
The Fed’s upcoming policy meeting is set for March 17-18, as per the central bank’s calendar, coming just after next week’s data. But that date now looms amid a leadership shuffle and changing market expectations on rate cuts.
The $5,000 mark is now the real-time focal point for traders. Should the dollar continue to strengthen and profit-taking escalate into widespread deleveraging, gold might slide further before attracting fresh buyers. The initial gauge will be Friday’s U.S. jobs report on February 6.
