By: Economy Middle east

Gold prices fell on Friday amid speculation that the Federal Reserve may get a more hawkish chair, yet they remained set for their biggest monthly rise since 1980 as ongoing geopolitical and economic uncertainty continued to drive investors toward the safe-haven metal.

As of 4:58 GMT, spot gold lost 1.77 percent to $5,211.28, after falling as much as 5 percent earlier in the session. Prices hit a record high of $5,594.82 on Thursday. Meanwhile, U.S. gold futures for February delivery dipped 1.83 percent to $5,221.10 per ounce on Friday.

Silver also witnessed major declines, with prices falling 2.04 percent to $111.11 after hitting a record high of $121.64 on Thursday. Silver has surged 56 percent so far this month and was on track for its best monthly performance ever.

UAE gold prices decline

In the UAE, gold rates posted notable declines after rising as much as AED26.75 in the previous session. On Friday, 24-carat gold fell AED1 to AED628.25 after surging to AED666 on Thursday, while 22-carat gold lost AED1 to AED581.75.

Additionally, 21-carat gold and 18-carat gold lost AED1 to reach AED557.75 and AED478, respectively.

Meanwhile, 14-carat gold dipped AED0.5 to AED373 after surging to over AED395 in the previous session.

Gold set for strongest monthly gain since January 1980

Gold prices have climbed over 20 percent so far in January, putting them on course for a sixth consecutive monthly increase and the strongest monthly gain since January 1980.

Gold prices gained roughly $1,000 an ounce in January, led by a surge into safe-haven assets. Escalating global geopolitical tensions, particularly between the United States and other major powers, fuelled demand for metals and other physical stores of value.

A steep slide in the dollar, driven by mounting concerns over U.S. fiscal stability, also supported metal prices, alongside ongoing uncertainty around the outlook for U.S. interest rates.

Trump to pick new Fed Chair on Friday

U.S. President Donald Trump said on Thursday that he plans to unveil his choice to succeed Federal Reserve Chair Jerome Powell on Friday, as speculation grows over who will take the helm of the U.S. central bank when Powell leaves the post in May. Speculation that Kevin Warsh could replace Jerome Powell as Federal Reserve Chair weighed on gold prices during Asian trading.

In addition, the dollar rebounded from multi-year lows, helped in part by the Fed’s decision on Wednesday to keep interest rates unchanged, but was still on track for a second consecutive weekly loss. A firmer dollar makes greenback-denominated gold more costly for overseas buyers, even as markets continue to price in two rate cuts in 2026.

Gold shipments from Switzerland to the UK, home to the world’s largest over-the-counter gold trading hub, climbed to their highest level since August 2019, Swiss customs data showed on Thursday. Meanwhile, the Hang Seng Gold ETF surged more than 9 percent in its Hong Kong trading debut in the previous session.

Other precious metals

As gold and silver prices slid from their record highs, the broader precious metals market declined. Spot platinum fell 4.45 percent to $2,512.41 an ounce after touching a record high of $2,918.80 on Monday, while palladium dipped 4.24 percent to $1,920.95 and copper eased 0.36 percent to $6.15.