Warsh's Hawkish Speech Triggers Gold Price Plunge by Nearly 2%

Gold prices plummeted by nearly 1.86% this week as markets reacted to higher-than-expected US inflation data and a hawkish speech by Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium.

The sharp decline in gold prices was triggered by July's US personal consumption expenditures (PCE) inflation reading, which came in at 3.7% year-on-year.

As markets digested this stronger-than-expected economic data, investors priced in a higher probability of the Fed remaining restrictive for longer, leading to a significant drop in gold prices.

The price of 10 grams of 24-carat gold fell to Rs 1,59,578 on Friday from Rs 1,62,603 seen on Monday at market opening, according to data published by the India Bullion and Jewellers Association (IBJA).