Gold prices extended their decline Monday after a sharp sell-off Friday, with gold futures around $4,475 per ounce, down more than 1%. Analysts attributed the drop largely to Fed Chair Kevin Warsh’s hawkish comments on inflation, which increased expectations for higher interest rates.
Renewed U.S.-Iran tensions also pressured gold by pushing oil prices higher and raising concerns about inflation, according to Conor Murray of Forbes. Markets now see a significantly higher probability of a Fed rate hike, with CME FedWatch showing a 63.9% chance in September, up from about 36% before Warsh’s speech.
Silver also fell, trading around $66 per ounce, after dropping from roughly $71 the previous week.
