Gold Nosedives To Fall Below $5,000 On Fed Chair Speculation

Spot gold plunged 7.5 percent to $4,972.61 an ounce on speculation about a potential hawkish Federal Reserve chair appointment.

Nevertheless, the previous metal still headed for a sixth monthly gain in a row. U.S. gold futures were down 6.8 percent at 4,990.29.

The dollar traded higher, clawing back some of its slide on the week, as U.S. lawmakers reached an agreement to avoid a partial government shutdown and President Trump said he has chosen a very good person to be the new Federal Reserve chairman, with a formal announcement expected later in the day.

According to media reports, former Federal Reserve governor Kevin Warsh has emerged as the top contender.

viewed as moderately hawkish with balanced approach—less dovish than Hassett but more dovish than Waller.

He is seen as hawkish on inflation with historical opposition to quantitative easing, suggesting a stronger dollar environment ahead.

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