29.08.2026 09:00
Fed Chairman Kevin Warsh's "hawkish" messages on inflation at the Jackson Hole meeting shook global markets. Following the statements, as the probability of a September rate hike rose to 57.5% and the dollar index climbed, spot gold fell to $4,455 per ounce, while the spot gram gold price, after five days, dropped back below the psychological threshold of 7,000 TL to 6,908 TL. The wave of decline also affected the cryptocurrency market.
In the final trading hours of the week, gold prices experienced a complete sell-off in global markets. Following the hawkish messages delivered by US Federal Reserve (FED) Chairman Kevin Warsh at the Jackson Hole meeting, the ounce of gold fell to $4,455, while the gram of gold dropped back below the psychological threshold of 7,000 TL after 5 days.
Precious metals, which tested record levels at the beginning of the week, came under heavy selling pressure with profit-taking that started in the second half of the week and harsh messages from the FED.
OUNCE AND GRAM PRICES HIT BOTTOM LEVELS
The ounce of gold, which had climbed to $4,697 during the week, refreshing its record, was trading at $4,455 as of 22:50 TSİ on the August 28 trading day. While the daily loss exceeded -3%, the ounce price also broke below its 200-day moving average ($4,525), a critical technical level. In the domestic market, the spot gram of gold fell to 6,908 TL with a decline of nearly -2%. While 7,262 TL was tested during the week, approaching historical peaks, with this decline, the gram price fell back below the 7,000 TL threshold after a 5-day gap.
HAWKISH MESSAGES FROM FED CHAIRMAN WARSH
The spark for the sharp decline in gold was ignited by the statements made by FED Chairman Kevin Warsh at the Jackson Hole Symposium. Stating that inflation continues to run above the 2% target, Warsh issued the following warnings: "Although PCE and Consumer Price Index data this summer came in better than expected, this does not show me that underlying trends have improved significantly. The responsibility for the high inflation that has continued for exactly 65 months lies directly with the FED. We must be sure that underlying inflation is clearly and sufficiently rapidly moving toward our target. Otherwise, we have work to do."
RATE HIKE EXPECTATIONS SURGED, DOLLAR AND CRYPTO FRONT MOVED
Following Warsh's statements, which created the perception that "interest rate tightening could continue," the cards in financial markets were reshuffled:
- Dollar Index: It rose rapidly after the statements, climbing to 99.65.
- Rate Hike Probability: In the markets, the expectation of the FED raising interest rates in September suddenly jumped to 57.5%.
- Crypto Market: The cryptocurrency market was also negatively affected by the hawkish-toned messages. Bitcoin (BTC) pulled back to the $77,500 level with a daily loss of 3.5%.