Gold Prices Plummet After Warsh's Jackson Hole Speech

Gold prices have taken a hit after Federal Reserve Chairman Kevin Warsh's inaugural Jackson Hole speech on August 28. The drop of nearly 3.18% to around $4,454 is attributed to rising US Treasury yields and a stronger US dollar index.

The recent rise in bond yields had already sent gold prices stuck in the $4,000 range for over two months. Mid-month saw Treasury bond yields reach multi-decade highs, with the US 30-year bond yield touching 5.33%, a level not seen since 2007.

Treasury Secretary Scott Bessent's announcement of doubling the buyback of long-dated securities as a liquidity measure gave gold a brief reprieve, causing prices to jump over $200 to around $4,580. However, this rally now appears short-lived.