Gold Prices Plunge on Hawkish Fed Comments

Gold prices declined in European trading on Monday, extending losses for a second consecutive session and hitting a two-week low. This decline was largely due to hawkish comments from Federal Reserve Chair Kevin Warsh at Jackson Hole, which boosted expectations for a US interest rate hike in September.

The price of gold fell 1.35% to $4,396.59 an ounce, the lowest level since August 19, from an opening level of $4,454.93 after recording a high of $4,472.14.

A weaker US dollar against a basket of global currencies limited further losses in gold. However, investors remain cautious ahead of a series of important US labor market reports that will provide crucial clues about the future path of US monetary policy.