Gold Crashes Below $4,200 Amid Rising Oil Prices and Hawkish Fed Expectations

Gold prices plummeted on Monday, falling below $4,200 an ounce as rising oil prices and higher US bond yields led investors to expect a prolonged hawkish stance from the Federal Reserve.

The move put bullion on course for its steepest daily decline since September 1, extending last week's pressure.

Gold's usual inflation-hedge argument was backfiring this time around as higher energy costs strengthened expectations of continued Fed tightening.

US 10-year yields were near a two-decade high at around 5.2% late last week, while long-dated yields remained elevated.