09:49 AM EST, 01/30/2026 (MT Newswires) -- Gold retreated from a record high early Friday as the U.S. dollar rose following a report that showed U.S. wholesale prices rose more than expected in December.

Gold for March delivery was last seen down US$265.80 to US$5,089.00 per ounce after closing at a record a day earlier.

The U.S. Bureau of Labor Statistics, in a delayed report, said the December Producer Price Index (PPI) rose by 0.5%, well above the Marketwatch consensus estimate for a rise of 0.3% and up from 0.2% in November. Core PPI, excluding volatile items, rose 0.4%, up from 0.2% a month earlier and above expectations for a rise of 0.3%.

Gold's retreat also comes as concerns over threats to independence of the Federal Reserve eased after U.S. President Donald Trump said he will nominate former Fed official Kevin Warsh to replace Jerome Powell as the Governor of central bank. While Warsh has been a critic of the Fed's policies, he is seen as "hawkish", which refers to someone who tends to prefer to keep rates higher, and may not be pressured by Trump to lower rates.

Gold's slump comes "amid broader risk-off signals and a firmer dollar. The latter followed speculation that Trump may nominate Kevin Warsh as the next Fed chair, a candidate viewed as more hawkish than other contenders", Saxo Bank noted.

As well, Canadian Prime Minister Mark Carney, who previously headed the Bank of Canada and the Bank of England, said in a social media post that Warsh "is a fantastic choice to lead the world's most important central bank at this crucial time".

The dollar rose early, with the ICE dollar index last seen 0.37 points to 96.66 after touching a four-year low earlier this week. Treasury yields were mixed, with the U.S. two-year note last seen paying 3.555%, down 1.2 basis points, while the yield on the 10-year note was up 0.7 points to 4.247%.