Precious Metals Crash: Gold and Silver ETFs Plummet Amid US Fed Rate Hike Fears
Gold and silver ETFs plummeted on Monday, following a global sell-off in precious metals. The sharp decline was triggered by rising crude oil prices, which fueled inflation concerns and strengthened expectations of further US Federal Reserve rate hikes.
Rising crude oil prices climbed $3.43, or 3.29 percent, to $107.75 a barrel after US President Donald Trump rejected an Iranian proposal aimed at ending the conflict and reopening the Strait of Hormuz.
This led to higher inflation expectations, increasing concerns that the Fed may have to tighten monetary policy further. The Fed raised its target rate by 25 basis points earlier this month to 3.75-4 percent.
The dollar remained near a two-month high as the US-Iran conflict continued to push oil prices and bond yields higher.