Gold has fallen below $4,450 per ounce on Monday, extending the steep decline recorded during the previous session, as restrictive statements from the president of the Federal Reserve (Fed), Kevin Warsh, revived expectations of an imminent interest rate hike.
During his speech delivered Friday in Jackson Hole, Warsh warned that inflation showed no signs of a significant slowdown and reaffirmed the central bank’s commitment to bring it back to its 2% target, while emphasizing that financial conditions were not currently restrictive.
Crude oil rose above $85 a barrel on Monday, starting the week higher after the U.S. military targeted Iranian rocket launchers preparing to deploy mines in the Strait of Hormuz, marking the first attack of this kind in more than a month.
U.S. forces have also indicated that they are closely monitoring this strategic maritime lane and remain ready to guarantee the free flow of trade.
