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.
Price action
-
Gold futures for December delivery
GC00,
-0.16% GCZ22,
-0.16%
fell $8.10. or 0.5%, to $1,647 per ounce on Comex. -
December silver
SIZ22,
-0.26%
fell 23 cents, or 1.2%, to $18.68, their lowest level since Sept. 9. -
December palladium
PAZ22,
+0.22%
was down $16, or 0.8%, to $2,054 per ounce, while platinum for October delivery
PLV22,
+0.28%
fell $12.90, or 1.5%, to $845 per ounce. -
Copper prices for December delivery
HGZ22,
-0.04%
fell 3 cents, or 0.8%, to $3.32 per pound.
What’s happening
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
DXY,
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
TMUBMUSD10Y,
climbed 6.8 basis points to 3.759%.
