Warsh's Hawkish Tone Sinks Gold and Silver Prices on MCX

Gold and silver prices plummeted on the Multi Commodity Exchange (MCX) last Monday, August 31. The MCX gold October futures dropped by almost 2% to ₹1,53,640 per 10 grams, while MCX silver September contracts plunged by nearly 2% to ₹2,32,501 per kg in early deals.

The downturn was triggered by weak global cues and a hawkish tone from US Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium. According to reports, Warsh hinted that the Fed may hike interest rates if inflation does not fall to 2%.

US gold futures December contracts crashed 4% over the last two sessions to $4,476.85 per troy ounce. However, for the month, they are still up about 10%. The selloff in domestic gold prices follows the rout in global markets.