Gold Prices Plummet by Over 3% After Fed Chairman's Speech

World gold prices had a volatile week, reaching a peak of nearly $4,700 per ounce before plummeting after Federal Reserve Chairman Kevin Warsh's speech at the Jackson Hole conference.

The upward momentum began to weaken from midweek as US bond yields rose and investors became cautious. The selling pressure increased in the last session of the week after Mr. Warsh issued a message considered tough on inflation and monetary policy, causing gold prices to fall by more than 1% in just a few hours.

Despite the sharp decline, some experts still predict gold prices will increase next week. Adam Button believes that gold prices may even fall when Mr. Warsh signals the possibility of interest rate hikes in September, while Marc Chandler thinks gold prices may test the $4,440 zone or even fall to $4,360 if important support levels are broken.

However, James Stanley maintains a positive outlook, seeing the sharp decline as a healthy correction and stating that the long-term outlook for gold has not changed. Rich Checkan also believes that gold prices still have room to increase, with adjustments being seen as short-term buying opportunities.