Gold drops over 1% after US Fed rate-hike hints
Gold prices just dropped over 1% to ₹156,780 per 10gm after the US Federal Reserve hinted it might raise interest rates to fight stubborn inflation.
Spot gold also slipped to $4,563.05 per ounce, quite a turnaround from just a few days ago when gold hit a three-month high thanks to optimism about US Treasury support.
Kevin Warsh stresses inflation, payrolls down
Fed official Kevin Warsh made it clear at the Jackson Hole symposium that tackling inflation is their top priority, pointing out the 12-month change in the PCE price index at 3.7%.
He said, "We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed." hinting at could hike interest rates if needed.
On top of that, new US jobs data showed payrolls dropped by 79,000, adding more pressure on markets and raising chances of tighter monetary policy ahead.