Fed Chair Kevin Warsh said inflation has not materially eased and the Fed “still has work to do,” triggering a sharp re-pricing of September rate odds, a stronger dollar and heavy selling in precious metals. Spot gold fell 2.6% on the day, down more than $120 to $4,480/oz, touching a one-week low of $4,464/oz. Independent analyst Tai Wong said Warsh’s comments—his most explicit to date that further hikes may be needed—prompted aggressive liquidation and left markets treating September as roughly

Fed Chair Kevin Warsh said inflation has not materially eased and the Fed “still has work to do,” triggering a sharp re-pricing of September rate odds, a stronger dollar and heavy selling in precious metals. Spot gold fell 2.6% on the day, down more than $120 to $4,480/oz, touching a one-week low of $4,464/oz. Independent analyst Tai Wong said Warsh’s comments—his most explicit to date that further hikes may be needed—prompted aggressive liquidation and left markets treating September as roughly a 50/50 split between a hike and a pause. Traders quickly increased bets on a September hike. Other metals: spot silver -3.63% at $66.77/oz; platinum -0.27% at $1,841.9/oz; palladium’s gain narrowed to 5.05% at $1,418.3/oz.