Gold prices decline accelerates as spot gold falls below $4,400
Following Fed Chair Kevin Warsh's hawkish messages regarding inflation and increasing rate hike expectations, ounce gold prices experienced a decline.
With Federal Reserve Chair Kevin Warsh's hawkish statements and strengthening expectations of a rate hike, the downward trend in gold prices gained momentum. Ounce gold is trading around 4,420 dollars on the first trading day of the week.
Fed Chair Warsh's Statements
Speaking at the Jackson Hole Economic Policy Symposium, Fed Chair Kevin Warsh emphasized that inflation has not fallen sufficiently. Reiterating the Fed's commitment to returning to the 2 percent target, Warsh stated that financial conditions are currently not restrictive.
Rate Hike Expectations Strengthened
According to CME FedWatch data, markets began pricing in the probability of a 25 basis point rate hike by the Fed in September at approximately 57 percent. This rate was around 40 percent a week ago.
Rise in Oil Prices
Developments in the Middle East and the increase in oil prices were among the factors putting pressure on gold. Brent crude is trading around 89.38 dollars, while US WTI crude is trading around 84.50 dollars.
Monthly Performance and Expectations
Despite all these sharp losses, gold is expected to close August with a value increase of over 10 percent. Employment and inflation data to be announced in the US will be influential in the future direction of the markets.
Current Gold Prices
While ounce gold is trading around 4,420 dollars, gram gold finds buyers in the free market in the range of 6,858 liras to 6,863 liras. The selling price of quarter gold is at the level of 11,192 liras.