Gold Prices Plummet as Fed Hawkish Tone Sparks Profit Booking

Gold prices declined on August 31 following Fed Chair Kevin Warsh's hawkish tone on inflation, prompting investors to book profits. COMEX gold futures dropped 1.23 percent to $4,474.30 per ounce at 02:37 GMT, while silver declined 1.71 percent to $65.85 per ounce in early trading.

The domestic market also saw a decline, with MCX gold futures for the October contract opening Monday's session 1.09 percent lower at Rs 1,54,239 per 10 grams. Similarly, MCX silver futures for the September contract dropped 1 percent to Rs 2,33,500 per kilogram.

Analysts state that this setup indicates a continuation of the correction rather than an isolated weak opening.