Gold and silver prices drop as rising bond yields weigh on metals

Gold and silver prices fell sharply on Monday as rising global bond yields dampened investor demand for non-yielding precious metals, with gold futures dropping 3.34% to $4,176.80 and silver futures sliding 5.1% to $61.52 per troy ounce. The sell-off also hit mining stocks in premarket trading, with Sibanye Stillwater down 7.92%, Harmony Gold Mining down 7.49%, and Newmont Corporation down 4.72%. Silver miners Silvercorp Metals, Endeavour Silver, and Hecla Mining also declined between 5.55% and 7.13%. Investors are monitoring inflationary pressures and potential Federal Reserve rate hikes amid surging government bond yields. Analysts note that while rate decisions affect gold, central banks purchased a record 289 metric tons in the second quarter, reflecting a longer-term reserve strategy.