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Gold slides more than 1% after Fed’s Kevin Warsh rate-hike hint
Spot gold fell 1.8% to 156,780 rupees per 10 grams after Warsh signaled the Fed could hike rates as inflation remains too high.
Gold prices reversed gains and dropped more than 1% on Friday, August 28, after Fed Chair Kevin Warsh hinted that the central bank could undertake interest rate hikes to address persistent inflation, Reuters reported via LiveMint Markets.
Warsh made the comments in a speech at Jackson Hole, and spot gold was quoted down about 0.8% to $4,563.05 per ounce by 1452 GMT. The move also followed small downward revisions to US nonfarm payrolls data, adding to pressure on the precious metal.
LiveMint Markets cited data showing gold trading at 156,780 rupees per 10 grams, down 2,830 rupees or 1.7% at the time of writing. The selloff came after gold hit a three month high on Tuesday, August 25, at $4,696.18 per ounce.
Independent analyst Tai Wong, quoted by LiveMint Markets, said gold was being hit as Warsh affirmed inflation was not meaningfully slowing, raising expectations that the market could treat the September meeting as close to a coin flip. The report also noted US Bureau of Labor Statistics employment data showed the March 2026 CES benchmark falling 0.1%, with private employment benchmark revisions of -178,000.
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