Gold Tumbles as Hawkish Warsh Speech Ignites Rate Hike Expectations

Gold prices plummeted nearly 1.86% this week due to hawkish statements from US Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium.

The MCX gold futures expiring in October dropped 1.63%, while MCX silver futures for September shed 1.66%. Gold futures stood at Rs 1,56,400, and silver futures stood at Rs 2,36,651 per kg on Friday.

A stronger-than-expected US inflation reading of 3.7% year-on-year and economic data pointing to a stronger economy led markets to price in a higher probability of the Fed remaining restrictive for longer.