Gold Price Crashes Below $4,200 as Oil Strengthens Hawkish Fed Expectations

Gold prices plummeted on Monday, sliding below $4,200 an ounce as rising oil prices and higher US bond yields strengthened expectations that the Federal Reserve may keep tightening policy.

The move put bullion on course for its steepest daily decline since September 1 and extended the pressure that pushed it lower last week.

Normally, gold would benefit from an oil-driven inflation scare. However, this time investors are treating higher energy costs as a reason for the Fed to remain hawkish.

US 10-year yields were around 5.2% late last week, close to a two-decade high, while long-dated yields remained elevated.