Fed Hawkishness and Oil Price Rise Crush Gold and Silver

The prices of gold and silver plummeted on August 31 as hawkish signals from the Federal Reserve pushed expectations of a September rate hike higher. The Fed's commitment to bringing inflation back to its 2% target, as reiterated by Chair Kevin Warsh during his Jackson Hole address, added to the pressure.

The precious metals faced further downward momentum due to rising oil prices amid renewed tensions between the US and Iran. The Strait of Hormuz, a critical route for global oil shipments, is under threat, which could disrupt energy supplies and push crude prices higher.