Warsh's Hawkish Refrain Sinks Gold Prices by 3.2%

Gold prices plummeted by 3.2% last week following a speech from Kevin Warsh at Jackson Hole, in which he expressed hawkish views on monetary policy.

The speech sparked a surge in USD strength and sent gold prices reeling to their largest daily decline in over two months.

Despite the significant drop, some analysts see potential for gold to rebound as fundamentals still favor the metal, particularly with concerns about austerity and lower government spending.

For next week, the question is whether bulls can sustain rallies above $4500, a level that has become a crucial line in the sand for gold prices.