Gold suffers biggest single-day drop since June as surging yields and dollar crush precious metals

What happened

Gold futures fell $150.80, or 3.5%, to $4,135.40 a troy ounce on Monday - their biggest single-day decline since June - and have now fallen in five of the past six sessions. Silver dropped roughly 4.8%, and US-listed precious-metal miners were among the day's top decliners: Gold Fields slid 16% in premarket trading while Harmony Gold and Endeavour Silver lost 5% and 6%, respectively. The rout was driven by a strengthening dollar (DXY near a two-month high at ~101.20) and the deepening Treasury selloff: the 10-year yield ended at 5.241%, its highest close since June 2007, and the 30-year hit 5.561%, its highest since 2002.

Who’s affected

• Gold miners (Gold Fields -16% premarket, Harmony Gold -5%, Endeavour Silver -6%) - direct leverage to gold prices
• Silver producers - silver fell 4.8%, tracking the precious-metals rout
• Rate-sensitive growth/tech stocks - the same yield surge driving gold lower is repricing duration-heavy equities

Sources

wsj.cominvestopedia.com