Gold Prices Plunge to 5-Week Low Amid Rising Treasury Yields

Gold prices have taken a hit, falling as much as 4% to $4,111 an ounce on Monday. This is their lowest point since August 5.

The decline in gold prices comes as US Treasury yields surge and markets bet on higher Federal Reserve rate hikes.

According to Adrian Ash, head of research at online bullion marketplace BullionVault, 'Today's fresh multi-decade highs in US borrowing costs have finally seen the gold price give way.'

The rise in two-year Treasury yields has been particularly significant this month, with markets pricing in a roughly 70% chance of a second consecutive Fed rate hike in October.