By Egzon Jusufi

 

The price of gold declined today after Kevin Warsh, the new Chair of the US Federal Reserve, delivered a distinctly firm message on inflation. Warsh took office on 22 May 2026 and addressed the prestigious Jackson Hole Economic Policy Symposium today for the first time in his capacity as Federal Reserve Chair.

 

His remarks may have resonated all the more strongly because financial markets are not yet fully familiar with his monetary policy stance or his manner of communication. Immediately following his address, investors began pricing in a significantly greater probability of an increase in US interest rates.

 

Warsh indicated that further monetary tightening could become necessary if inflation did not move clearly and sufficiently rapidly towards the 2% target. Higher interest rates are generally unfavourable for gold, as the precious metal itself pays no interest. At the same time, short-term US Treasury yields rose and the dollar strengthened.

 

At the time of writing, at 9.45 p.m. Belgian time, the dollar-denominated gold price was trading nearly 3% below the previous closing price. Gold also declined when expressed in euros, although part of the loss was mitigated by the weakening of the euro against the dollar.

 

The next important test will come on 11 September, when the US inflation figures for August are due to be published. These data could have a significant influence on interest-rate expectations and, consequently, on the price of gold.

 

The present decline should primarily be regarded as a reaction to changing interest-rate expectations. On its own, this movement does not yet constitute evidence of a structural reversal in the gold market.

 

Anyone wishing to discuss these developments and their possible implications for personal wealth may arrange a private consultation with us at any time. We welcome both longstanding and new clients in a discreet and secure setting, with the confidentiality, prudence and personal attention that any carefully considered decision concerning gold naturally requires.

 

In 2026, we are honoured to mark seventy years of experience in the gold sector.

 

To arrange a private consultation:

 

03 886 62 54 — Agnesa

0477 28 12 41 — Egzon

0495 60 27 02 — David Louis