Gold prices continued to plunge Monday morning, extending five-year lows amid speculation the Federal Reserve will hike interest rates by year’s end.
Fed Chair Janet Yellen told Congress that the economy is improving at a pace that should allow the central bank to begin normalizing rates in the next few months.
The benchmark U.S. interest rate has been at zero for years, helping the recovery from the worst recession in decades.
U.S. gold for August is down $20 at $1112 an ounce. It is thought that Chinese holders sold big quantities of the precious metal in catch-up trade after an Asian holiday Friday.
Silver lost 7 cents to $14.77.
Platinum also hit five year lows.
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