Gold, Silver Prices Plunge on Warsh's Inflation Battle Comments

Gold and silver prices plummeted sharply in late Friday U.S. trading following Federal Reserve Chair Kevin Warsh's comments at Jackson Hole, which reinforced the central bank's commitment to fighting inflation.

The decline was led by spot gold, which fell 3.14% to $4,456.00 per ounce, while spot silver dropped 4.24% to $66.21.

Warsh emphasized that the Fed's mandate is to ensure stable prices and flagged persistent inflation as the primary risk, leading to a significant liquidation in precious metals.

The hawkish stance from the Fed also pushed short-end yields higher, bolstered the U.S. dollar, and prompted a surge in odds for a September rate hike to 57.5% from 35.9%.