Gold Prices Plummet on Hawkish Fed Remarks and Strong US Inflation Data

Gold prices took a hit on Friday after the release of higher-than-expected US inflation data and hawkish remarks from Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium.

The MCX gold futures for October delivery declined by 1.63%, while September silver futures fell by 1.66%. The prices stood at Rs 1,56,400 for gold and Rs 2,36,651 per kg for silver.

According to the India Bullion and Jewellers Association (IBJA), 10 grams of 24-carat gold was priced at Rs 1,59,578 on Friday, down from Rs 1,62,603 at Monday's market opening.

The strong economic data prompted markets to price in a greater possibility of the US Federal Reserve keeping monetary policy restrictive for longer. Warsh's hawkish remarks further reset interest-rate expectations, which led to gold plunging by roughly $70 within minutes of his speech before recovering some ground.