Gold, Silver Prices Plummet on Rising Oil and Yields

The prices of gold and silver dropped sharply in late U.S. trading on Monday as rising oil prices and Treasury yields pushed expectations for another Federal Reserve rate increase higher.

Spot gold prices fell about 3.8% to around $4,131 an ounce, while spot silver prices declined by roughly 5% to approximately $61.02.

The renewed Strait of Hormuz risk premium lifted oil prices, which in turn increased Treasury yields and reinforced expectations for a higher Fed rate path.