Gold Prices Plummet as Fed Warns of Potential Inflation Action

The price of gold plummeted by over 3% on Friday after Fed Chairman Kevin Warsh hinted at additional monetary policy steps to combat inflation during his speech at the Jackson Hole Economic Policy Symposium.

Warsh emphasized that despite better-than-expected personal consumption expenditures and consumer prices index readings this summer, underlying trends have not significantly improved. He warned that if inflation does not fall to target levels, further action may be necessary.

The decline in gold prices led to a corresponding drop in silver, which lost 4.2% to $66.3 per ounce. Gold also suffered, falling to $4,454 per ounce on a daily basis.