Gold prices are extending recent losses after Federal Reserve Chair Kevin Warsh's hawkish speech at the Jackson Hole symposium last Friday. Warsh signaled that interest rate hikes may be necessary to combat persistent inflation, dampening the appeal of non-yielding assets like gold. This has led to a significant repricing of rate-hike probabilities for the September FOMC meeting. Renewed geopolitical tensions between the U.S. and Iran, which might typically support gold, are instead being viewed as a potential source of further inflation via higher oil prices, reinforcing the Fed's hawkish stance.
Gold Pressured by Hawkish Fed Rate Hike Outlook
Gold sector
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