Gold declines after Powell doubles down on tight monetary policy

Gold declined more than 1 percent on Friday due to Federal Reserve Chair Jerome Powell’s speech at Jackson Hole. He said that the U.S. economy will need tight monetary policy “for some time” before inflation is under control.

Spot gold decreased 1.25 percent to $1,736.49 per ounce. This is a route to a second straight weekly decline. U.S. gold futures was down 1.26% to $1,749.

“Equities and metals are suffering from Powell’s unvarnished reminder that rates will need to be high for longer and that perhaps 75 bps is the default for September unless the totality of the data suggests otherwise,” senior trader at Heraeus Precious Metals in New York Tai Wong stated.