by Christopher Freeburn | March 24, 2014 4:38 pm
Gold dropped sharply in heavy Monday trading as rising investor concern over possible future Federal Reserve interest rate hikes weakened the metal’s appeal.
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.
Mining ETFs dropped during the day.
Gold stocks pulled back on Monday.
Silver mining shares retreated during the day.
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.
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