Gold Prices Plunge Amid Warsh's Hawkish Comments

The price of gold has taken a hit due to hawkish remarks from Fed Chair Kevin Warsh, causing yields on Treasuries to rise and the dollar to gain strength. This has put pressure on non-yielding metals like gold, leading to a sharp weekly drop.

Gold's value fell 3.18% on Friday and approximately 3.25% for the week, closing at $4,455. The increased yields have made it challenging for gold to extend above the $4,650-$4,700 area, triggering a bearish reversal.

CyclesFan's daily chart indicates that the price of gold has dropped below its 200-day simple moving average, casting doubt on the target of $4,890. The analyst suggests that if the price follows through and breaks below this line, it could represent a midterm high.