Gold and Silver Prices Plummet as Rising Bond Yields Erase Investor Appetite

Precious metals such as gold and silver took a hit on Monday due to rising global bond yields, which have reduced their appeal to investors. Gold futures plummeted by 3.34% to $4,176.80 per ounce, while silver futures fell by 5.1% to $61.52 per troy ounce. This decline in prices is not limited to bullion; U.S.-listed mining stocks also saw sharp premarket declines, with Sibanye Stillwater down 7.92%, Harmony Gold Mining off 7.49%, and Silvercorp Metals losing 7.13%.

The central banks' record purchase of 289 metric tons of gold in Q2 is seen as a long-term reserve strategy separate from the Federal Reserve's decisions. However, sustained rate hikes and disinflation could weigh on gold prices for an extended period. Max Baecker, president of American Hartford Gold, noted that if rate hikes bring inflation under control, gold faces sustained pressure.