US Hawkish Stance Weighs on Gold Prices Ahead of Fed Meeting
The US Federal Reserve's hawkish stance has put downward pressure on gold prices. Fed Chair Warsh expressed concerns over elevated inflation, stating that underlying trends of CPI and PCE inflation readings are not encouraging.
In his speech at the Jackson Hole Symposium, Warsh emphasized the need for action if inflation doesn't start falling soon. He also highlighted the responsibility of the Federal Reserve in controlling inflation, which has been running above its goal for 65 months.
The hawkish comments from Warsh have led to a decline in gold prices, with spot gold trading at $4436, down ~0.40% from Friday's close. The yellow metal has also lost 3.15% over the past two days and 3.2% for the week ending August 28.
The escalating US-Iran tensions have added to the downside pressure on gold prices, with crude oil prices jumping ~5% to $90.54.