Gold Prices Slide as US Inflation Data and Hawkish Fed Speech Take Toll

Gold prices took a hit last week, falling by nearly 1.86% due to higher-than-expected US inflation data and Federal Reserve Chair Kevin Warsh's hawkish debut speech at the Jackson Hole symposium.

The price of 10 grams of 24-carat gold dropped from Rs 1,62,603 on Monday morning to Rs 1,59,578 on Friday. MCX gold futures expiring in October declined by 1.63%, while MCX silver futures for September shed 1.66%.

The US inflation data and Warsh's speech are seen as market-moving events that contribute to the decline in gold prices. The drop in gold prices is a reflection of investors' expectations of higher interest rates, which can make non-yielding assets like gold less attractive.