Hawkish Fed Comments Trigger Sharp Gold Sell-Off Amid Rate Hike Bets

Gold prices plummeted by nearly 3% on Friday after Federal Reserve Chair Kevin Warsh's hawkish remarks at the Jackson Hole Economic Policy Symposium reignited speculation about a September interest rate hike.

The comments sparked a sharp sell-off in bullion, with spot gold falling to $4,456.20 an ounce and U.S. gold futures declining to $4,506.66.

Warsh emphasized the importance of price stability and expressed concerns that underlying inflation trends had not improved meaningfully, fueling renewed bets on a rate hike in September.

The move was seen as a significant reversal from the previous week's rally, which saw gold surge due to growing concerns over U.S. fiscal sustainability and currency debasement.