Gold Tumbles 2% as Fed Officials Talk Up More Rate Hikes

Gold dropped 2.06% Thursday, trading at $3,903.12 an ounce at 8:34 am ET, according to Breaking The News. Silver fell 2.14%, changing hands at $50.62 an ounce a minute later. Platinum slipped 1.02%, selling at $1,526.47 at 8:36 am ET. Palladium went the other way, climbing 3.13% to $999.82 an ounce.

The selloff traces straight back to the Federal Reserve. Vice Chair for Supervision Michelle Bowman said persistent US inflation shows the central bank still has work to do. Dallas Fed President Lorie Logan said price pressures may force the Fed to raise rates more rapidly. Traders read both as a signal that the tightening cycle isn't finished.

It's a sharp reversal from Wednesday, when precious metals bounced. Silver rallied 3.03% to $53.08 an ounce, while gold added 0.65% to $4,057.38. Geopolitical uncertainty around the wars in Iran and the Middle East had pushed investors toward safe-haven assets that day.

Tuesday was uglier still. Gold sank 3% to $4,018.08 an ounce and silver shed 4.03% to $51.21 after a US inflation report came in hotter than expected. Fed Governor Christopher Waller said a December rate hike might be necessary if the new Consumer Price Index reading lands around 0.3% or higher.