Gold Prices Plummet Amid Fed's Hawkish Stance

Gold prices plummeted on Friday, August 28, as MCX gold futures fell by 1.63% to Rs 1,56,400 per 10 grams. This decline marked a week-end closing of 2-3% lower for the metal.

The downward trend was triggered by Federal Reserve Chair Kevin Warsh's hawkish stance on inflation at the Jackson Hole event. Profit booking intensified across bullion markets following the commentary, with Jateen Trivedi, VP Research Analyst (Commodity and Currency) at LKP Securities, attributing the selling pressure to this event.

Analysts expect continued volatility in gold prices for the coming week, but do not predict a strong gap-up opening on Monday, August 31. The metal's price is likely to remain unstable due to ongoing market fluctuations.