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Kevin Warsh delivers hawkish keynote at Jackson Hole, causing gold futures to plunge 3.24% in a single session

December gold futures fell by $150.70, or 3.24%, on Friday after Kevin Warsh delivered a more hawkish-than-expected keynote address at the Jackson Hole Economic Symposium. The price of gold closed at $4,504.10, erasing the week's gains and moving back below the 200-day moving average. Prior to the speech, gold had maintained a steady upward momentum, reaching a three-month high earlier in the week. However, the Fed's signals regarding interest rates created a significant shift in market sentiment. While the sharp decline represents a technical setback, analysts suggest the broader bullish thesis remains intact due to fundamental factors like national debt and sticky inflation. Market experts remain divided on the ideal gold allocation for portfolios. While some suggest a small position for resiliency, others advocate for a higher exposure of up to 20% as a wealth protection strategy against devaluing paper currencies.

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