(Kitco News) – The gold market is trying to crawl up from session lows as it was dragged down by hawkish comments from Secretary Treasurer Janet Yellen.
Speaking in a webinar hosted by The Atlantic, Yellen warned that interest rates might have to rise to stop the U.S. economy from overheating.
“It may be that interest rates will have to rise somewhat to make sure that our economy doesn’t overheat, even though the additional spending is relatively small relative to the size of the economy,” she said in the presentation, catching gold and silver prices by surprise.
Gold prices last traded at $1,775.1 an ounce, down nearly 1% on the day. Meanwhile silver prices are giving back more gains after Monday’s breakout rally. July silver last traded at $26.31 an ounce, down more than 2% on the day.
But it was not just markets that were taken by surprise as some analysts noted that Yellen’s comments on interest rates are inappropriate.
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