Gold Prices Plummet Over 1% After Fed Chair's Hawkish Tone

Gold prices experienced a dramatic week, marked by significant fluctuations in response to various economic indicators and statements from Federal Reserve officials. The precious metal began the week trading at $4,618.79 per ounce on Sunday evening and reached its weekly high of $4,697.66 per ounce on Tuesday.

However, gold's advance faltered on Wednesday morning after Fed Chair Kevin Warsh's Jackson Hole speech reinforced the central bank's inflation-fighting stance and revived expectations for a September rate hike. The metal slipped below $4,600 as yields firmed and traders became more cautious.

The selling accelerated on Thursday as stronger Fed rate-hike expectations, a firmer U.S. dollar, and higher short-term Treasury yields pressured non-yielding assets. Spot gold fell to its then-low of $4,566.17 per ounce before rebounding slightly by Friday morning.

Warsh's hawkish tone from Jackson Hole turned sentiment sharply bearish, causing gold prices to fall well over 1% in the hours that followed. The metal ultimately set the weekly low of $4,445.45 just before 3 pm ET before closing the week at $4,455 per ounce.