Fed Comments Spark Gold Price Crash: Inflation Fears Send Precious Metals Plummeting

Gold prices plummeted by over 3% on Friday after rising throughout August. The sharp decline followed comments from Kevin Warsh, Chairman of the United States Federal Reserve (The Fed), at the Jackson Hole Economic Policy Symposium.

Warsh signaled that additional policy steps from the Fed may be necessary if inflation does not fall to target levels. Despite personal consumption expenditure and consumer price index figures exceeding expectations in the summer, data have not shown a significant improvement in the trend.

Gold prices fell 3.18% on a daily basis to $4,454 per ounce. Silver prices also weakened, dropping by 4.2% to $66.3 per ounce.