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- Gold and silver prices fell sharply Monday, with silver posting the larger decline.
- U.S.-listed precious metals miners also fell in premarket trading.
Gold and silver prices slipped sharply on Monday, as rising global bond yields cooled investor appetite for non-interest-bearing assets, like precious metals. The sell-off also dragged major mining stocks lower in premarket trading.
Gold futures slumped 3.34% to $4,176.80, while spot gold prices were off by 3.27% at $4,145.88 around 5:40 a.m. E.T.
Stock Chart IconStock chart icon
Gold futures.
Silver, meanwhile, fell even further. Silver futures were last seen 5.1% lower at $61.52 per troy ounce, while spot silver had shed 4.92% to $61.11.
Stock Chart IconStock chart iconSilver futures.
U.S.-listed shares of global gold and silver miners dropped in premarket trading on the back of the retreat.
Sibanye Stillwater, a major gold producer which is also active in platinum and palladium markets, was 7.92% lower ahead of Monday’s market open, while Harmony Gold Mining slumped 7.49%. Newmont Corporation was down 4.72% in premarket trading.
Among silver miners, Silvercorp Metals was down 7.13%, Endeavour Silver shed 5.86%, and Hecla Mining dipped 5.55%.
Stock Chart IconStock chart iconSilvercorp.
The downward moves come as investors continue to monitor inflationary pressures and the likelihood of further interest rate hikes from the Federal Reserve against a backdrop of surging government bond yields.
“If hikes bring inflation under control, gold faces sustained pressure,” Max Baecker, president of American Hartford Gold, said in a note Friday. “If inflation sticks or economic stress builds, demand for gold as a diversifier holds.”
Baecker added that rates are “just one piece of the gold story,” noting how global central banks purchased a record 289 metric tons in the second quarter, which he sees as a longer-term reserve strategy separate from Fed rate decisions.
