Last week, Fed Chairwoman Janet Yellen signaled that the central bank could begin raising interest rates sooner than Wall Street had expected — as early as the first half of next year. Higher interest rates favor the U.S. dollar at the expense of precious metals like gold.
Gold futures for April fell 1.9% to $1,311.20 per ounce on Monday, according to CME Group. Gold traded as high as $1,335.70 and as low as $1,308.50. Bullion closed in London at $1,312, according to BullionVault.
Silver futures for May delivery sank 1.2% to $20.07 per ounce. Monday’s high for silver was $20.32, while the low was $19.97.
Metal funds sank on Monday.
- The SPDR Gold Shares (GLD) slid 1.8%.
- The iShares Gold Trust (IAU) fell 1.8%.
- The iShares Silver Trust (SLV) faded 1.6%.
Mining ETFs dropped during the day.
- The Market Vectors Gold Miners ETF (GDX) dropped 4.7%.
- The Market Vectors Junior Gold Miners ETF (GDXJ) plunged 6.8%.
- The Global X Silver Miners ETF (SIL) tumbled 5.1%.
Gold stocks pulled back on Monday.
- Agnico-Eagle Mines (AEM) fell 4.7%.
- Barrick Gold (ABX) slid 4.5%.
- Eldorado Gold (EGO) declined 4.6%.
- Goldcorp (GG) moved down 4.1%.
- Kinross Gold (KGC) dropped 5%.
- Newmont Mining (NEM) sank 2.7%.
- NovaGold Resources (NG) tumbled 5.4%.
- Yamana Gold (AUY) slipped 3.2%.
Silver mining shares retreated during the day.
- Coeur d’Alene Mines (CDE) dropped 7.1%.
- Hecla Mining (HL) plunged 7.7%.
- Pan American Silver (PAAS) fell 6.3%.
- Silver Wheaton (SLW) slid 7.1%.
- Silver Standard Resources (SSRI) tumbled 7%.
As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.