Analysis: Gold Plunges on Fed Hawkish Chair Prospects, But Set for Best Month in 46 Years in January

BlockBeats News, January 30th, due to market rumors that the Fed may see a more hawkish chairperson appointment, the price of gold plummeted more than 4% on Friday. However, amid ongoing geopolitical and economic pressures, investors have been flocking to this safe-haven asset, and the gold price is still expected to mark its strongest monthly gain since 1980.

KCM's Chief Trading Analyst Tim Watt said: "A potential less dovish Fed chairperson appointment, a rebound in the US dollar, and a reversal of gold's overbought condition have all contributed to the decline in precious metal prices."

StoneX's Senior Analyst Matt Simpson stated: "Rumors about Kevin Wash taking over from Powell as the Fed chair pressured gold during the Asian trading session." In addition, silver also saw a sharp drop, plunging 6% intraday, after hitting a historical high of $121.64 per ounce the previous trading day. Silver has surged 56% so far this month, poised to deliver its best monthly performance ever. (FXStreet)