Home›Commodities›Precious Metals›Gold and silver fall after hawkish Jackson Hole remarks

Gold and silver fall after hawkish Jackson Hole remarks

Spot gold slipped 0.4% to $4,428.54 per ounce, while silver was down 0.2% to $66.42, as traders recalibrated rate-hike odds after Fed Chairman Kevin Warsh's comments.

Reported · Written up by our desk · Precious Metals

Gold and silver prices reversed lower after US Federal Reserve Chairman Kevin Warsh delivered hawkish remarks at Jackson Hole, shifting investor sentiment on inflation and interest rates, LiveMint Markets reported.

Spot gold was down 0.4% at $4,428.54 per ounce by 0432 GMT, after it hit the lowest level since 19 August in the prior session. US gold futures were also slightly lower at $4,477.20, down 0.1%.

Silver slid 0.2% to $66.42, while the weakness also showed up in domestic markets: MCX gold declined 0.3% to ₹153,997.0 per 10 grams, and MCX silver initially fell 0.1% before recovering to rise 1% to ₹235,800 per kg, LiveMint Markets said.

The sell-off followed Warsh's comments that the Fed would have more work to do if policymakers could not gain confidence that inflation is moving toward the Fed's 2% target, with the remarks pushing bond yields higher. Traders cited by LiveMint Markets also pointed to rising rate-hike expectations, including a 66% probability of a September hike and an 89% probability for December, based on the CME FedWatch Tool, while geopolitical tensions tied to the Strait of Hormuz and its impact on oil were adding to the pressure on bullion.

Latest closeGold $4,509.30 ▲0.7%|Silver $67.61 ▲0.9%

More like this

Sources