Gold and related ETFs are seeing a significant sell-off, continuing a multi-session decline that began after Federal Reserve Chair Kevin Warsh's hawkish remarks at the Jackson Hole symposium. [4, 6, 17] Warsh's warning that inflation is not yet under control has led markets to sharply increase the probability of a September interest rate hike. [4, 13, 17] This has driven up Treasury yields and strengthened the U.S. dollar, creating a challenging environment for non-yielding assets like gold. [2, 12, 13] The decline is also exacerbated by profit-taking after a strong August rally. [2, 3]
Gold Prices Tumble on Hawkish Fed Outlook
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