Commodities
Gold Tumbles on Warsh's Hawkish Stance, Interest Rate Hikes Loom
Gold prices tumbled on Monday to their lowest level in nearly two weeks after Federal Reserve Chairman Kevin Warsh hinted at potential interest rate hikes to combat inflation.
The spot price of gold fell by 0.7% to $44,423.84 per ounce by 0204 GMT, marking its lowest point since August 19.
Warsh's comments at the Jackson Hole economic symposium in Wyoming on Friday sent shockwaves through markets, with a 57% chance of a Fed rate hike in September now estimated, up from 36% before his speech.
The Fed Chair warned that policymakers would 'have work to do' if they don't get the confidence they need that inflation is heading down to 2%, sparking concerns among gold investors.