Precious Metal Prices Weigh on London Miners

London-listed miners felt the weight of a steep fall in gold and silver prices on Monday, leading to sharp declines across the sector. Precious metal prices weakened significantly, with gold falling 2.5% to $4,211.37 and silver plummeting 4.1% to $62.12. This led to losses for major miners such as FRES, which dropped 5.1%, making it the FTSE 100's biggest faller.

The decline in precious metal prices was attributed to higher bond yields and a firm US dollar, which reduced their appeal. Investors also took profits following the sector's earlier strength, further exacerbating the losses. This trend extended beyond gold and silver producers, with other miners such as ANTO, AAL, GLEN, RIO, and ATYM experiencing declines.

The FTSE 100 index rose 0.4% to 10,738.61, while the FTSE 250 advanced 1% to 24,503.76. However, miners acted as a significant drag on the internationally-focused blue-chip index, indicating a clear sector rotation.