Gold Price Holds Steady at $4,400 as Hawkish Sentiment Reigns
The gold price has held steady around $4,400 after a significant decline following Federal Reserve Chair Kevin Warsh's hawkish speech. The price fell by over 3% in one session and dropped to nearly 6% below its high of $4,697 from a week ago.
Warsh's remarks indicated that inflation is not slowing down significantly and that further rate increases may be necessary if inflation fails to return to the 2% target. This shift in policy expectations caused a significant repricing of hike probabilities, with CME FedWatch odds jumping to above 65% from around 40% before the speech.
Despite the large decline, the price has not broken below the $4,400 zone or the 100-day moving average beneath it. The market's structural supports remain intact, and the gold price is currently trading around the 20-day average near $4,430.