Warsh's Hawkish Jackson Hole Speech Triggers Gold Price Plunge
Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole Economic Symposium sent shockwaves through the gold market, causing spot gold to plummet below $4,560 per ounce.
Warsh emphasized that inflation has not slowed meaningfully and that policymakers still have work to do, reiterating the Fed's unwavering objective of bringing inflation back down to 2%.
The hawkish remarks drove the US Dollar Index higher and put pressure on precious metals, with spot gold falling 1% to settle at $4,555.39 per ounce, while silver declined 0.47% to $68.92 per ounce.
However, despite the near-term pressure, market participants believe that structural demand from central banks continuing to accumulate gold as an alternative to the dollar will provide downside support for prices.