Gold Prices Plummet After Hawkish Jackson Hole Speech

The gold market experienced significant volatility last week, with prices reaching a high of US$4,730.90 before retreating to close at the week's low of US$4,454.08.

This sharp correction followed Federal Reserve Chair Kevin Warsh's hawkish address at Jackson Hole, where he emphasized that inflation remained above the Fed's 2% objective and indicated further interest-rate increases could be required if price pressures did not ease sufficiently.

Dorex CEO John Kochanski noted that the market response was swift, with a more restrictive signal expected to strengthen the US dollar and lift Treasury yields, creating resistance for gold.

Despite the correction, Dorex views gold primarily as a long-term store of value and strategic reserve asset rather than a short-term trading instrument.