Commodities
Gold Price Plunges Amid Hawkish Fed Message and Regional Tensions
The price of gold has steadied at around $4,450 after a sharp decline on Friday following an unexpectedly hawkish message from Fed Chairman Kevin Warsh at the Jackson Hole summit.
Warsh urged policymakers to focus on prices and stated that the central bank has 'work to do' to bring inflation to its 2% target. This led investors to increase their bets of a September rate hike to 61%, up from 36% the previous day, according to the CME's FedWatch Tool.
The US military's attacks on Iranian targets over the weekend have also contributed to the safe-haven appeal of the US dollar, further putting downward pressure on gold prices.