Bond Yields Crush Gold and Silver Prices

Gold and silver prices plummeted on Monday as rising bond yields put pressure on precious metals. The sharp decline marked another reversal for metals that had posted strong gains earlier in the year.

According to data from CME Group, December gold futures traded around $4,115 an ounce, down roughly 4%, while December silver futures fell to around $60.23 an ounce, a decline of more than 5%.

The recent downturn follows a period of unusually strong activity in precious metals markets. In August, the World Gold Council reported that average daily trading volume across the global gold market rose 21% to about $430 billion, while exchange-traded activity climbed 33%.

Higher bond yields have added another source of pressure on gold and silver. As interest-bearing assets such as government bonds become more attractive, investors are turning away from precious metals that do not pay interest.