Gold Defies Hawkish Warsh Speech, Stabilizes Above Key Support
Gold futures managed to recover from an initial sharp decline after Fed Chairman Kevin Warsh's hawkish speech at Jackson Hole on Friday. The metal tumbled by $150 on the day, but has since clawed back much of that ground and is down only $5 on the day.
The key support zone formed by a historical area of support and resistance dating back to the end of 2025 at $4,474, which aligns closely with the simple 100-day moving average now at $4,468, has been crucial in gold's resilience. As long as gold can defend this level, it will most likely continue higher, at least in the short term.
The session captures a tension worth watching: gold's initial selloff was a standard reaction to Warsh's warning that inflation remains too elevated and hinting the central bank may still have work left to do. However, gold's quick stabilization above the $4,468-$4,474 confluence, and its ability to close out its best month since February despite Friday's shock, hints that something sturdier than a single speech is underpinning the metal.