Fed’s Hawkish Stance and Market Reaction Federal Reserve Chair Kevin Warsh’s first speech since taking office in May was a clear hawk, pledging to bring inflation to a 2% target with short‑term rates as the main tool. The comments pushed the dollar higher, and bullion fell as much as 2% to $4,485.76 per ounce in New York. Silver slipped 3.5% to $66.82 per ounce, while platinum and palladium edged higher, reflecting the mixed reaction across precious metals.
Gold’s Technical Support and Institutional Buying Gold’s recent rebound had been underpinned by broad investor participation, keeping the metal above its 200‑day moving average—a key technical support level. Bloomberg‑tracked gold ETFs added 28 tons last week and another 20 tons this week, the largest purchases since January. Central‑bank buying also accelerated, adding to the upward pressure on bullion even as the market absorbs the hawkish Fed tone.
Investors now watch whether the 2% inflation goal will be met and how the Fed’s stance will evolve. A sustained rise in the dollar or a shift in the yield curve could further test gold’s resilience, while institutional buying may provide a cushion for the metal’s price action in the coming weeks.