Gold Prices Plunge Amid Hawkish US Fed Speech

Gold prices took a hit on Friday, plummeting nearly 1.86% as investors digested higher-than-expected inflation data and US Federal Reserve Chair Kevin Warsh's hawkish speech at the Jackson Hole symposium.

The MCX gold futures expiring in October dropped 1.63%, while 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 on Friday.

The price of 10 grams of 24-carat gold was at Rs 1,59,578 on Friday, down from Rs 1,62,603 seen on Monday at market opening. The decline came after July's US personal consumption expenditures (PCE) inflation reading came in at 3.7% year-on-year.

The stronger-than-expected economic data led to market pricing in a higher probability of the Fed remaining restrictive for longer. Warsh's speech reset rate expectations, causing gold to tumble roughly $70 within minutes before recovering some ground. Silver also gave back gains from its earlier highs.