Gold Prices Plummet 1.86% Amid Hawkish Fed Speech and Strong US Inflation Data

Gold prices took a hit last week, falling nearly 1.86% as markets reacted to higher-than-expected inflation data and a hawkish speech by US Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium.

The MCX gold futures expiring in October dropped 1.63%, while MCX silver futures for September shed 1.66%. Gold futures stood at Rs 1,56,400, and silver futures stood at Rs 2,36,651 per kg.

Renewed concerns about currency debasement and US Treasury support for long-dated bonds had caused the bullion rally to multi-month highs earlier in the week. However, stronger-than-expected economic data led to market pricing in a higher probability of the Fed remaining restrictive for longer.