Gold Prices Slide as Warsh's Hawkish Comments Boost Dollar and Yields

Gold prices dropped on Wednesday as Federal Reserve Governor Kevin Warsh's hawkish comments strengthened the US Dollar and pushed Treasury yields higher. The greenback rose 0.3% to 105.20, making gold more expensive for overseas buyers.

The yield on the 10-year Treasury note climbed to 4.52%, its highest level in two weeks, increasing the opportunity cost of holding gold.

Warsh signaled that the Fed's next policy move could be a rate hike if inflation remains sticky, contradicting market expectations for cuts later this year.