Warsh's Hawkish Comments Send Gold Prices Tumbling 2%

Gold prices plummeted 2% on Saturday, marking their biggest decline since July. The sharp drop in gold comes after US Federal Reserve Chairman Kevin Warsh reaffirmed his commitment to bringing inflation back to the central bank's 2% target.

Warsh's hawkish stance on inflation strengthened expectations that the Fed could raise interest rates this year, putting pressure on the precious metal. The remarks also bolstered the US dollar, which rose after his comments.

Ole Hansen, head of commodity strategy at Saxo Bank, described Warsh's speech as 'hawkish', citing his focus on bringing inflation down to 2%. Despite gold's decline, Hansen noted that it remained to be seen whether the move would be sufficient to end the bullish narrative surrounding the metal.