PRECIOUS METALS | Gold Falls as Kevin Warsh’s Hawkish Remarks Lift the Dollar

Gold prices fell after Federal Reserve Chair Kevin Warsh warned that inflation has not slowed significantly and said the Fed still has work to do unless policymakers are convinced inflation is easing. According to Sina Finance, Warsh reiterated that the Fed will bring inflation back to 2% and called it a firm, unwavering goal. His remarks pushed the dollar higher and sent gold down as much as 1.2%. Warsh also confirmed that short-term interest rates are the main tool for achieving the Fed's dual mandate, and said unconventional policies aimed at stimulating economic activity may be appropriate in a real crisis but should otherwise be used with great caution. Spot gold fell 1% to $4,555.39 per ounce. Silver dropped 0.47% to $68.92 per ounce, while platinum and palladium rose. The Bloomberg Dollar Spot Index, which measures the dollar's performance, moved higher.