On Monday, gold futures fell by 3.34% to $4,176.80, while spot gold prices decreased by 3.27% to $4,145.88. Silver futures dropped 5.1% to $61.52 per troy ounce, with spot silver down 4.92% to $61.11.
The decline in precious metals prices was mirrored by a drop in U.S.-listed shares of mining companies, with Sibanye Stillwater down 7.92%, Harmony Gold Mining down 7.49%, and Newmont Corporation down 4.72% in premarket trading. Silver miners also faced losses, with Silvercorp Metals down 7.13% and Endeavour Silver down 5.86%.
The sell-off is attributed to rising government bond yields, which have led investors to reassess their positions in gold and silver amid concerns over inflation and potential interest rate hikes by the Federal Reserve.
Max Baecker, president of American Hartford Gold, noted that while interest rates are a significant factor, the recent record purchases of gold by global central banks—289 metric tons in the second quarter—indicate a longer-term strategy that may support demand for gold as a diversifier in uncertain economic conditions