Gold and silver continued losing value on Tuesday after some more hawkish statements were made by Janet Yellen in her semi-annual address to Congress. Ms. Yellen’s addresses to Congress today and tomorrow are undoubtedly the biggest happening this week, and will also more than likely be the biggest markets-mover as well. With very little economic data on the slate for this week, all eyes will remain fixated on the price action of precious metals.

Yellen’s Remarks More Hawkish Than Expected

After last week’s FOMC minutes failed to provide any insight into the Fed’s plans with regard to the raising of interest rates, all eyes then turned to this week’s addresses to Congress being made by Janet Yellen. In her speech to Congress this morning, Janet Yellen once again reiterated that the Fed plans on being completely finished with Quantitative Easing. This news was already expected by the market and was of little interest to investors.

In addition, Ms. Yellen proposed that so long as improvement in the United States’ employment sector continues, interest rates may be lowered soon than when was originally anticipated. These hawkish remarks almost instantaneously drove the spot values of precious metals downwards. The reason for this is due to the fact that interest rates, if raised, will make interest-yielding assets much more valuable in the eyes of an investor looking to make quick gains. Because gold and silver offer no yields, higher interest rates will make things like US Treasuries a much more ideal investment option.

Today’s hawkish remarks made by Janet Yellen boosted the US Dollar against many rival currencies, including the euro and the yen. As we head into the final days of the week, it will be incredibly important for investors to keep an eye on the price action of gold and silver. If follow-through selling continues, gold, silver, platinum, and palladium may be seen trending lower for the foreseeable future.