Gold drops over 1% to $4,450 as Fed hawkishness weighs

Gold futures fell more than 1% toward $4,450 an ounce on Monday, extending the previous session?s losses as hawkish remarks from Federal Reserve Chair Kevin Warsh boosted expectations for tighter monetary policy. Warsh stressed that inflation has not eased meaningfully and that the Fed still has work to do to bring inflation back to its 2% target, prompting markets to sharply raise September rate-hike expectations. A stronger US dollar and higher Treasury yields further pressured the non-yielding metal. Despite the latest decline, gold remains on track to finish August with gains of more than 10%, while MCX October gold futures fell 1.1% to ₹1,54,580 per 10 grams.

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