Gold Prices Plummet Amid Hawkish Fed Comments, Rising Interest Rates

Gold prices declined on Monday to near a two-week low as investors reacted to Federal Reserve Chair Kevin Warsh's hawkish comments at the Jackson Hole symposium. The metal fell 0.8% to $4,419.38 per ounce by 10:30 a.m. EDT (1430 GMT), its lowest level since August 19.

The decline in gold prices was attributed to rising interest rates and inflation expectations driven by energy prices. Crude oil rose over 3% on Monday after the United States struck an Iranian island, escalating a conflict that has now entered its sixth month.

Traders have increased their bets on a September rate hike to about 64%, up from 36% before Warsh's comments. This shift in expectations is expected to continue to weigh on gold prices.