Gold prices tumbled by more than 8% to break below the $5,000 ​mark on Friday as the dollar strengthened on the imminent appointment of a new U.S. Federal Reserve Chair, though the ⁠safe-haven metal remained set for its biggest monthly gain since 1982 after chalking up multiple record peaks.

Other precious metals also ⁠dropped sharply ‌as profit-taking kicked in.

Spot gold was down 5% at $5,124.37 an ounce by 1132 GMT, having slid to $4,957.54 earlier in the session. U.S. gold futures for February delivery fell 3.9% to $5,118.40.

Gold ⁠scaled a record peak of $5,594.82 on Thursday and is still on track for a more than 18% gain this month, heading for a sixth straight monthly gain.

"The expected appointment of Kevin Warsh as Fed Chair, who is perceived to be a more hawkish pick than other contenders, appears to have put ⁠downward pressure on precious metals prices," said ​Hamad Hussain at Capital Economics.

U.S. President Donald Trump is expected to reveal his pick for the next Fed chair on Friday, with ‍former Fed Governor Warsh seen as a frontrunner. Warsh has pushed for a smaller Fed balance sheet, contrasting with Trump's inclination towards looser monetary ​policy.

The U.S. dollar rose on Friday, clawing back some of this week's slide to a four-year low, making dollar-priced gold more expensive for overseas buyers.

Physical gold premiums in India rose to their highest in more than a decade on strong investment demand ahead of a likely duty increase. Premiums in China jumped after a pickup in investment and jewellery demand.

"We see gold dipping far lower than today but see a recovery and an average of $5,375 for 2026, reaching a peak of $6,400 during the fourth quarter," said independent analyst Ross Norman.

Among other precious metals, spot silver was down 11.7% at $102.57 an ounce after dropping as low as $95.79. The metal hit a record ⁠high of $121.64 on Thursday and has surged 42% this month, on track ‌for its best monthly performance.

"Although a significant part of the move in the rise in silver has been based upon sound fundamentals, there was clearly a speculative excess within the market and I think that's getting ‌blown off," Norman ⁠added.

Spot platinum lost 10.9% to $2,343.40 an ounce after hitting a record high of $2,918.80 on Monday. Palladium, meanwhile, plunged 8.4% ⁠to $1,838.14.

(Reporting by Pablo Sinha in Bengaluru Additional reporting by Swati Verma Editing by David Goodman)