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Reuters

Gold prices plunged to their lowest in more than five years on Monday, at one point dropping 4 per cent on aggressive selling out of China, while the US dollar hit a three-month high on expectations for higher US interest rates.
Equity markets posted modest gains, with the focus remaining on earnings season.
The dramatic sell-off in gold came in a matter of minutes in Shanghai. More than 33 tonnes of gold, worth about US$1.3 billion, traded in two minutes.
The exact reason for the selling was unclear. Recent strength in the US currency and expectations for higher US rates have undermined the case for holding gold and other precious metals, while analysts also note that China imported a record volume of gold in 2013 that has created an oversupply situation. Still, the swiftness of the decline surprised traders and resulted in two separate trade halts in US gold futures.
The spot price for gold was at $1,094.5 an ounce, after hitting a low of $1,088.50 overnight.
Watch: Gold sold as China buyers go cold

"We have breached significant support levels, we know US rate hikes are coming, there is no inflation and there is no catalyst to hold gold when other markets are doing better," Societe Generale analyst Robin Bhar said.
Other commodities were sinking as well. US crude oil fell 93 cents to $49.96, the first time it has been below $50 since April. Brent crude was last down 59 cents a barrel at $56.51.
The dollar jumped to its highest since April 23 against a basket of major currencies but was then flat on the day. The greenback posted its best weekly performance in about two months last week after Federal Reserve Chair Janet Yellen reiterated that US interest rates will probably rise later in the year.
Global equity markets held close to Friday’s three-week highs and European shares approached seven-week peaks as Greece-related fears continued to recede.
The country’s banks reopened for the first time in three weeks following a deal to start talks on a new bailout. The pan-European FTSEurofirst 300 index rose 0.3 per cent to its highest since late May.
On Wall Street, the Dow Jones industrial average rose 13.96 points, or 0.08 per cent, to 18,100.41, the S&P 500 gained 1.64 points, or 0.08 per cent, to 2,128.28 and the Nasdaq Composite added 8.72 points, or 0.17 per cent, to 5,218.86.
The Nasdaq hit a record on Friday after strong results from Google. Tech earnings will dominate reports this week. Investment bank Morgan Stanley’s shares fell 0.4 per cent following its results.
The euro fell to its lowest since late May on the EBS trading platform but last traded up 0.06 per cent at $1.0838. The yen dropped 0.2 per cent to 124.38 to the dollar.
The yield on the 10-year U.S. Treasury bond rose to 2.377 per cent, as the price fell 6/32 of a point.
 


Wall Street rises as gold sinks to 5-year low as China sells

A broker on Wall Street works the floor of the stock exchange, with gold prices tumbling on Monday to its lowest in five years. Photo: AP 

Business

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.css-sioo19{color:#c79a00;}New | Wall Street rises as gold sinks to 5-year low as China sells

New | Wall Street rises as gold sinks to 5-year low as China sells