Gold Price Slumps To 3-Month Low, Yellen Prefers Rate Hike
New York (May 28) Gold prices continued to fall Friday, losing ground every day this week on epectations of a US rate hike in June or July.
The Federal Reserve should raise interest this summer if the economy continues to improve, Fed Chair Janet Yellen said Friday afternoon.
"I think for the Fed to gradually and cautiously increase our overnight interest over time and probably in the coming months, such a move would be appropriate," she said at Harvard University .
June gold was down USD6.60 , or 0.5%, for the session to settle at USD1,213.80 /oz.
Gold prices were down 3.1% for week, dropping to the lowest in three months.
Earlier today, official data showed the US economy slowed less than expected in first quarter.
Gross domestic product rose at 0.8% rate from January to March, up from an initial 0.5% reading, the Commerce Department said.