Gold prices decline in global markets as attention turns to September Fed decision
Hawkish statements by US Federal Reserve Chairman Kevin Warsh and the rising probability of a rate hike in September led to a sharp drop in gold prices in global markets.
Gold prices in global markets recorded a sharp decline following hawkish messages from US Federal Reserve Chairman Kevin Warsh and strengthening expectations that the Fed will raise interest rates in September.
Messages from the Fed Chairman
Fed Chairman Kevin Warsh emphasized in his speech at the Jackson Hole Economic Symposium that inflation has not yet fallen to the desired level.
Rate Hike Expectations
According to market pricing, the probability of the Fed implementing a 25 basis point rate hike at its September meeting rose to 57 percent.
Geopolitical Developments
Within the scope of developments in the Middle East, the US military targeting Iranian rocket launchers caused oil prices to rise.
Current Gold Levels
While spot gold started the day at 4,436 dollars, it fell down to 4,396 dollars during the day and last traded at the 4,420 dollar level.
Gram gold started the day at 6,880 liras, fell down to 6,823 liras, and last found buyers at the 6,858 lira level.