Commodities
Warsh's Hawkish Comments Spark Gold Rout Amid Rising US Treasury Yields
Gold prices plummeted over 2.50% on Friday as Federal Reserve Chair Kevin Warsh's hawkish comments at Jackson Hole sparked a rally in the US Dollar.
The XAU/USD pair traded at $4,473 after reaching a high of $4,629, with rising US Treasury yields and overall US Dollar strength driving the sudden weakness in precious metals.
Warsh stated that he still sees inflation as a priority, leaning hawkish as he recognized that underlying inflation measures haven't improved.
The Fed must be confident that inflation is returning to its 2% goal, or otherwise 'we have work to do,' Warsh said.