Gold Tumbles Amid Warsh's Hawkish Comments

Gold prices fell to their lowest level in a week on Friday, dipping toward $4,560 an ounce. This decline was attributed to hawkish commentary from Federal Reserve Chair Kevin Warsh. In his first major speech since becoming chair in May, Warsh emphasized the need for policymakers to be confident that underlying price pressures are easing.

Warsh reiterated the Fed's commitment to returning inflation to its 2% goal, which he described as a 'firm and fixed' target. He also stated that financial conditions are not currently restrictive.

Markets responded to Warsh's remarks by raising the probability of a September rate hike to near 50%, according to CME FedWatch.