Gold Prices Plunge After Jackson Hole Speech
World gold prices experienced a rollercoaster week, with significant fluctuations in value. The price of spot gold opened at around $4,618.79 USD/ounce on Sunday evening and rose by about 48 USD in Monday's session, surpassing the Fibonacci 38.2% mark at $4,692 USD/ounce.
The upward momentum continued until Tuesday, with spot gold reaching a week-high of $4,697.66 USD/ounce, the highest price range in about three months. However, on Wednesday, US inflation data showed that price pressure had not been fully controlled, putting pressure on gold and causing it to fall below $4,600 USD/ounce.
The selling pressure continued to increase on Thursday as the market raised expectations of a potential interest rate hike by the Federal Reserve. The strengthening USD and rise in short-term US Treasury bond yields reduced the attractiveness of non-performing assets like gold.
But the price of spot gold recovered slightly, returning to the $4,631.98 USD/ounce zone at the beginning of Friday's session. However, Fed Chairman Kevin Warsh's speech at the Jackson Hole conference quickly changed market sentiment, causing gold to plummet to a week-low of $4,445.45 USD/ounce.