Markets are still expecting two interest rate cuts in 2026. For other precious metals, silver price fell 5.7% in spot trading to $109.55 an ounce after hitting a record high of $121.64 in the previous session. Gold fell more than 4% today due to speculation that a person inclined to monetary tightening might head the Federal Reserve, but the precious metal is still on track for its strongest monthly gains since 1980 with investors flocking to safe-haven assets amid ongoing geopolitical and economic tensions. By 0323 GMT, spot gold was down 3.9% at $2183.21 an ounce after falling 5% earlier. Gold reached a level not seen before at $2594.82 in the previous session. Gold's gains have exceeded 20% so far this month, marking the sixth consecutive monthly increase, the largest monthly rise since January 1980. U.S. gold futures for February delivery fell 2.7% to $2176.40 an ounce on Friday. "So, the choice of a Federal Reserve chair who is perhaps less inclined to monetary easing and a stronger dollar, all of that contributed to the decline in the precious metal's price," said Tim Watt, senior trading analyst at K.M.C. The dollar recovered from multi-year lows, partly supported by Wednesday's decision to keep U.S. interest rates unchanged, but it is set to post losses for the second week in a row. A stronger dollar increases the cost of dollar-denominated gold for holders of other currencies. The metal has gained 56% so far this month, on track for its best monthly performance ever. Platinum fell 5.3% to $1489.31 an ounce after hitting an all-time high of $1918.80 on Monday, while palladium rose 5.8% to $1890.25.
