Gold Price Analysis – XAG/USD tumbles to $26.20 on Yellen’s comments
- US Dollar rose quickly across the board after US Treasury Secretary Yellen spoke about interest rates.
- Gold and silver printed fresh daily lows, moving away from key levels.
Silver lost 2.5% in a few minutes during the American session and bottomed at $26.21 following comments from US Treasury Secretary Janet Yellen. XAG/USD then bounced to the upside to the 26.50 area. It was still under pressure, as market participants digest the recent developments.
Yellen mentioned that interest rates may have to rise to stop the economy from overheating, triggering a rebound in US yields and weakening metals. The 10-year yield rose from multi-day lows at 1.55% to 1.58%. At the same time, the DXY printed a fresh daily high at 91.37.
Earlier on Tuesday, XAG/USD peaked at 27.11, but it failed to hold above 27.00 and quickly pulled back below. The bullish tone alleviated after the rejection from above 27.00, which was followed by the sharp correction.
At the same time, gold also tumbled. It peaked at $1799/oz and recently plummeted to $1773, turning negative for the day and far from the $1800 area.