Gold Tumbles Further as Hawkish Warsh Remarks Continue to Dominate Market

Gold prices continued to slide on Monday, with spot gold trading at around $4,450 an ounce after Friday's sharp selloff. The decline was largely attributed to Federal Reserve Chair Kevin Warsh's hawkish remarks during his first Jackson Hole speech as chairman, which reinforced the central bank's focus on bringing inflation back to target.

The comments from Warsh led traders to lift their expectations for a September rate hike, causing Treasury yields and the dollar to rise. This in turn increased the opportunity cost of holding non-yielding gold, leading to a decline in prices.

Friday's drop erased gold's gains for the week and interrupted what had been a strong August rally, with bullion on track for its best monthly performance this century heading into the speech. With no fresh catalyst emerging over the weekend or into today's session, traders appear to be still digesting Friday's repricing.