Commodities
Gold Prices Plummet to Seven-Week Low Amid Rising US Treasury Yields
Gold prices have plummeted to a seven-week low of $4,110.55 per ounce after suffering one of its sharpest daily declines in recent months.
The decline represents a significant deterioration from Friday's close around $4,285 and has pushed gold well below several technical levels that had previously provided support.
Rising US Treasury yields have become the dominant pressure on gold, with the benchmark 10-year yield climbing to around 5.24% on Monday, its highest level since 2007.
The move is particularly important for gold because rising yields increase the opportunity cost of holding a non-yielding asset, and expectations for additional Federal Reserve tightening have strengthened at the same time.