Gold Prices Plummet on Hawkish Fed Speech and Escalating US-Iran Conflict
Gold prices plummeted over 3% last Friday after Fed Chair Kevin Warsh's hawkish speech at the Jackson Hole symposium boosted expectations for a September rate hike. The speech, given on August 30, hinted that policymakers still 'have work to do' if underlying inflation is not returning to its 2% target quickly enough.
The U.S.-Iran military conflict escalated over the weekend, further intensifying inflation fears and putting pressure on gold's upside. As a result, international crude oil prices rose, with Brent crude climbing back above $90.
Despite the decline in gold prices to below $4,400, technical analysis indicates that gold still has upside potential. The 20-day moving average is currently at around $4,400, which may form a confluent support structure, weakening short-term bearish momentum.