Gold set for steepest daily drop since 1983; silver eyes worst day ever

By Anmol Choubey Jan 30 (Reuters) – Gold fell and was poised for its biggest daily loss since 1983 on Friday, as the dollar strengthened after U.S. President Donald Trump announced his choice for Fed chair, while silver was heading for its worst day on record. Spot gold dropped 8.9% to $4,915.17 per ounce at 12:30 p.m. ET (1730 GMT), after retreating to an intraday low of $4,898.89 earlier. U.S. gold futures for February delivery slipped 7.7% to $4,940.70. The selloff, described by analysts as profit-taking, also pressured other precious metals. The triggers behind the sell-off could be a combination of factors, ranging from the Fed Chair announcement to broader macro flows, said Suki Cooper, global head, commodities research at Standard Chartered Bank. Whether we look at the dollar or expectations for real yields, a combination of these drivers has helped trigger profit-taking, she added.  Trump named former Federal Reserve Governor Kevin Warsh as his choice to succeed Jerome Powell as Fed chair in May, placing a frequent critic of the central bank in a key leadership role.  Gold hit a record peak of $5,594.82 on Thursday and remains on track for a nearly 12% rise this month, marking its sixth consecutive monthly increase. The U.S. dollar index gained 0.7%, rebounding from a four-year low earlier this week and making greenback-priced gold more expensive for overseas buyers. [USD/] Meanwhile, Joe Cavatoni, Senior Market Strategist, Americas, and Head of Public Policy, US, World Gold Council said, "in an environment shaped by policy uncertainty, rising debt burdens and geopolitical risk, gold is increasingly being viewed as a strategic portfolio allocation rather than a short-term trade."  Gold premiums in India hit decade-highs on investment demand, while China saw gains on jewellery and investment interest. [GOL/AS] Among other precious metals, spot silver was down 21.92% at $90.66 an ounce after dropping as low as $89.93. Prices were on track for their biggest daily drop on record, based on LSEG data available through 1982. The white metal hit a record high of $121.64 on Thursday and has surged more than 23% this month. Spot platinum lost 18% to $2,155.73 an ounce and palladium plunged 13.7% to $1,741.36. (Reporting by Anmol Choubey and Anushree Mukherjee in Bengaluru; Editing by Shailesh Kuber)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)