Powell's hawkish inflation message lifts September hike odds; gold tumbles more than $120

ME News reported that on Aug. 29 (UTC+8), comments from Federal Reserve Chair Jerome Powell stressing the need to rein in inflation pushed markets to price in a higher probability of another rate increase. The shift boosted the U.S. dollar and weighed on precious metals. Spot gold was down 2.6% on the day at the time of writing, sliding more than $120 to $4,480 per ounce after touching a one-week low of $4,464. Independent analyst Tai Wong said Powell made it clear inflation has not eased meaningfully and that the Fed "has more work to do," sparking a sharp selloff in gold. Wong added that even if the messaging proves to be "loud thunder, little rain," it has turned the September meeting into a close call, with markets assigning roughly even odds to a hike versus a pause. Powell's remarks were his clearest signal so far that additional tightening may be needed to cool price pressures. He said the Fed "has more work to do" if policymakers cannot be confident that underlying inflation is steadily moving back to the 2% target. Traders quickly increased bets on a September hike following the comments. Other precious metals also moved lower. Spot silver fell 3.63% to $66.77 per ounce. Spot platinum dipped 0.27% to $1,841.90. Spot palladium remained higher but pared gains to 5.05%, trading at $1,418.30. (Source: BlockBeats)