Gold Takes Hit as Yields and Dollar Strength Prove Too Much

Gold prices plummeted by 3% on Monday, with silver dropping 5%, as rising yields and dollar strength proved too much for the metals to handle.

The losses follow a period of relative resilience, despite the Fed's hawkish September decision and monetary tightening by major central banks.

Central bank buying remains an important source of support for gold prices, with July purchases totaling 23 tonnes led by China and Poland.

However, technical analysts are warning that a confirmed bullish reversal signal is needed to re-align the short-term price action with the longer-term bullish outlook.