ISTANBUL

Gold slumped more than 4% on Friday, amid speculations the US Federal Reserve might receive a more hawkish chair, but was still on track for its greatest monthly gain since 1982 as investors rushed to the safe haven amid persisting geopolitical and economic concerns.

Spot gold declined to around $5,161.50 an ounce as of 0750GMT, after touching an all-time high of $5,595.46 on Thursday. Still, prices gained about 3.5% over the week.

However, gold has surged roughly 85% over the past 12 months and about 19% since the start of the year, supported by heightened trade and geopolitical tensions as well as interest rate cuts by major central banks.

Silver also plummeted, falling 8% to around $106.36 on Friday, from Thursday's all-time high of $121.67 an ounce. Still, silver prices have jumped more than 235% over the past year.

US President Donald Trump stated on Thursday that he plans to reveal his choice to succeed Fed Chair Jerome Powell on Friday. There is growing conjecture that former Fed Governor Kevin Warsh would be chosen.

Despite his previous reputation as an inflation hawk, Warsh has recently sided with Trump by publicly advocating for lower interest rates.

The Fed's decision on Wednesday to keep interest rates constant helped the dollar recover from multi-year lows, but it remained on the verge of a second consecutive weekly fall.

Gold bought in US dollars becomes more costly for foreign buyers when the currency strengthens. The markets continue to anticipate two rate cuts by the Fed in 2026.

Meanwhile, US President Donald Trump said Thursday that he is planning to hold talks with Iran, easing some fears of a potential strike.

"I have had (conversations with Iran in the last few days), and I am planning on it," he told reporters at the Kennedy Center. But Trump reiterated that "a lot of very big, very powerful" ships are sailing to Iran right now.