Gold fell Friday and was headed for its steepest daily fall since 1983 after U.S. President Donald Trump announced his choice for Fed chair, while silver slumped nearly 30% and was poised for its worst day on record.

Spot gold dropped 9.5% to $4,883.62 per ounce at 1:57 p.m. ET (1857 GMT) after prices climbed to a record peak of $5,594.82 on Thursday. U.S. gold futures for February delivery settled 11.4% lower at $4,745.10.

The selloff, described by analysts as profit-taking, also pressured other precious metals.

The market was due for a correction and the triggers behind the selloff 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 remains on track for a more than 13% 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.

"January 2026 is done, (and) it will go down as the most volatile month in precious metals history," said Nicky Shiels, head of metals strategy at MKS PAMP SA, in a note.

She said that gold at $4,600, silver at $80, and platinum at $2,000 are reasonable downside targets, adding that prices would need to decline to reset toward a more moderate bullish trajectory.

Among other precious metals, spot silver was down 27.7% at $83.99 an ounce after dropping as low as $77.72.

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 17% this month. Spot platinum lost 19.18% to $2,125 an ounce and palladium plunged 15.7% to $1,682.