Why Are Precious Metal Stocks Falling Today?

Newmont Corporation (NYSE: NEM ), Barrick Mining Corporation (NYSE: B ) and other gold and silver stocks fell in premarket trading Monday after gold prices dropped to their lowest level in more than seven weeks. Gold fell below $4,200 an ounce, while higher oil prices fueled inflation concerns and strengthened expectations for further U.S. interest rate increases, according to Trading Economics. Why Gold Is Falling Brent crude oil rebounded after President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz. Trump expects talks to resume this week, while Iran said it will not soften its conditions. Rising energy costs tend to lift prices across the economy. UBS analyst Giovanni Staunovo said higher oil prices and rate hike expectations are “the main drivers behind gold’s recent weakness.” Higher rates raise the opportunity cost of holding gold, which pays no interest, Read Also: Stock Market Today: S&P 500, Dow Jones Futures Fall as Rising Yields and Trump’s Hormuz Deal Rejection Spook Investors Fed Rate Hike Odds In Focus CME’s FedWatch Tool showed a 70.3% chance of a Fed rate hike in October. The Fed raised rates by a quarter percentage p