Gold Prices Plunge Amid Hawkish Stance by US Fed Reserve

Gold prices plummeted nearly 1.86% this week following hawkish remarks from US Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium.

The market's strong rally earlier in the week was reversed after July's US personal consumption expenditures (PCE) inflation reading came in at 3.7% year-on-year, alongside other economic data indicating a stronger-than-expected economy.

This led to investors pricing in a higher probability of the Fed remaining restrictive for longer, which reset rate expectations and caused gold prices to drop.

Gold futures on the MCX expiring in October dropped 1.63%, while silver futures for September shed 1.66%.