Gold extended its decline on the final trading day of August after spot gold dropped more than 3% in the previous session — its biggest one-day fall since June 10.

According to Odaily, the sell-off came after hawkish signals from Fed Chair Kevin Warsh, while rising interest rates and Treasury yields challenged expectations for a weaker U.S. dollar.

Meanwhile, higher oil prices are adding to inflation pressure, which could keep the Federal Reserve cautious on rate cuts or even raise the possibility of further hikes.

However, rising U.S. debt, a widening fiscal deficit and potential Treasury market intervention could continue supporting gold in the longer term. 👀

Short-term pressure, but long-term support remains strong.