Gold Prices Plunge on Fed Chair's Hawkish Comments and Iran Tensions

The price of gold fell further on Monday following its biggest decline in months on Friday. Analysts attribute this drop to Federal Reserve chair Kevin Warsh's speech calling for Fed action to cool inflation, as well as renewed tensions with Iran.

Gold futures are trading at around $4,475 as of just after 10 a.m. EDT on Monday, down more than 1%, although the metal hit a low of $4,445.60 earlier in the morning.

Ole S. Hansen, head of commodity strategy at Saxo Bank, said gold is trading 'sharply lower' following Warsh's 'hawkish' speech, which lifted expectations that the central bank could soon raise interest rates.