Warsh's Hawkish Speech Triggers Sharp Drop in Gold and Silver Prices

The US Federal Reserve Chairman Kevin Warsh delivered a hawkish speech at the central bankers' gathering in Jackson Hole, Wyoming last Friday. His comments triggered a sharp reversal in gold and silver prices after investors weighed the implications of escalating tensions in the Middle East.

Globally, spot gold was down 0.4% at $4,428.54 per ounce by 0432 GMT, while US gold futures edged 0.1% lower to $4,477.20. Spot silver slipped 0.2% to $66.42.

In India's domestic commodity markets, MCX gold declined 0.3% to ₹153,997.00 per 10 grams, while MCX Silver initially fell 0.1% to ₹233,501.00 per kg before recovering and rising 1% to ₹235,800.00 per kg.

Carsten Menke, Head Next Generation Research at Julius Baer, believes the outlook remains stronger for gold than for silver. 'In our view, the case for gold is still clearer than the case for silver,' he said.