Bond Yields Hammer Gold and Silver Prices

Gold and silver prices have plummeted on Monday due to rising global bond yields that are cooling investor appetite for non-interest-bearing assets like precious metals.

The sell-off has dragged major mining stocks lower in premarket trading, with gold futures slumping 3.34% to $4,176.80 and spot gold prices off by 3.27% at $4,145.88 around 5:40 a.m. E.T.

Silver fared even worse, falling 5.1% in futures trading to $61.52 per troy ounce, while spot silver had shed 4.92% to $61.11.

This decline comes 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.