Gold Prices Plummet After Warsh's Inflation Warning

Gold prices plummeted by 3.2% on August 28th, closing at $4,456 an ounce, after Federal Reserve Chairman Kevin Warsh's Jackson Hole keynote speech.

In his address, Warsh stated that underlying inflation has not improved and that the Fed may still have work to do, which is a stark contrast to market expectations.

This marks the second time in seven months that a single Warsh event has significantly impacted gold prices, with the first occurrence happening on January 30th when gold fell by 10.3% and silver dropped by 28.5%, marking the peak of their respective prices.

However, despite the sharp decline, central banks purchased 289 tonnes of gold in Q2 2026, a 62% increase from the same period last year and the strongest second quarter on record, with the National Bank of Poland being the largest buyer at 51 tonnes.