Gold tumbled to its lowest level in nearly two-and-a-half years on Monday as the 10-year Treasury yield climbed to its highest level since 2010, and the dollar advanced to fresh 20-year highs.
- Gold futures for December delivery
fell $8.10. or 0.5%, to $1,647 per ounce on Comex.
- December silver
fell 23 cents, or 1.2%, to $18.68, their lowest level since Sept. 9.
- December palladium
was down $16, or 0.8%, to $2,054 per ounce, while platinum for October delivery
fell $12.90, or 1.5%, to $845 per ounce.
- Copper prices for December delivery
fell 3 cents, or 0.8%, to $3.32 per pound.
Gold prices have been reeling in recent weeks thanks to expectations for more aggressive monetary policy tightening from the Federal Reserve and other global central banks.
The yellow metal experienced a “minor flash crash” overnight, according to Kitco Senior Analyst Jim Wyckoff.
“Gold and silver prices are lower again in early U.S. trading Monday,” Wyckoff wrote in a note to clients. “Gold prices scored another nearly 2.5-year low overnight. Rising government bond yields and a soaring U.S. dollar index are the main bearish elements driving the precious metals markets south.”
The ICE U.S. Dollar Index
a gauge of the dollar’s strength against a basket of rival currencies, rose 0.4% to 113.61 largely thanks to ongoing weakness in the euro, pound and Japanese yen.
The 10-year Treasury yield
climbed 6.8 basis points to 3.759%.