Gold Prices Plunge After Hawkish Speech at Jackson Hole

Gold prices surged by 20% in just eight weeks, reaching a high of $4,755.00 per ounce on August 25, but have since eased after Federal Reserve Chair Kevin Warsh's hawkish address at Jackson Hole on August 28 sent gold lower.

The metal has dropped about 5% from its peak to trade at $4,524.40 an ounce as of Thursday morning, according to the New York Comex futures market.

Analyst Stephen 'Sarge' Guilfoyle notes that gold's chart shows two concurrent technical patterns developed recently, both appearing bullish: a long falling-wedge pattern and a shorter double-bottom pattern.

However, with interest rates rising and potential support at the 50-day Simple Moving Average (SMA) of $4,248.60 crucial, gold may continue to drop if it does not stabilize above this level.