Gold Falls 3.3% Below $4,177 as Bond Yields Hit Non-Yielding Metals
Updated
Updated · CNBC · Sep 28
Gold Falls 3.3% Below $4,177 as Bond Yields Hit Non-Yielding Metals
3 articles · Updated · CNBC · Sep 28
Summary
$4,176.80 gold futures and $4,145.88 spot gold both dropped more than 3% Monday, while silver futures sank 5.1% to $61.52 as selling hit precious metals early.
Rising global bond yields weakened demand for non-interest-bearing assets, with investors also reassessing inflation risks and the chance of further Federal Reserve rate hikes.
Mining shares followed bullion lower in premarket trading: Sibanye Stillwater fell 7.92%, Harmony Gold lost 7.49%, and Newmont slipped 4.72%; silver miners Silvercorp, Endeavour and Hecla also declined.
American Hartford Gold's Max Baecker said lower inflation from rate hikes could keep pressuring gold, though persistent inflation or economic stress could preserve its role as a portfolio diversifier.
Longer term, central-bank buying remains a counterweight to rate pressure after official purchases reached a record 289 metric tons in the second quarter.