Warsh's Hawkish Tone Sends Gold Price Plummeting Below $4,600

Fed Chair Kevin Warsh's hawkish comments sent shockwaves through financial markets on Friday. In his prepared remarks at the Jackson Hole conference, Warsh reaffirmed that tackling inflation remains a top priority for the US central bank.

'We have work to do' if underlying measures of inflation haven't improved, he emphasized, hinting that the Fed will focus on addressing rising prices.

The market responded swiftly to Warsh's comments, with investors pricing in a higher chance of a rate hike. The US Dollar Index (DXY) rose by over 0.38% as measured against six other currencies, while the US 10-year Treasury yield increased more than a basis point to 4.686%.

The gold price suffered as a result, falling below $4,600 and testing its weekly lows of $4,530. The Relative Strength Index (RSI) remains above the neutral 50 level, but its downward trajectory suggests that sellers are stepping in.