Gold prices plunged on Monday, falling to $4,146 an ounce as rising bond yields dulled the appeal of the precious metal on Monday.

Higher yields increase the opportunity cost of holding gold, which pays no interest, prompting investors to sell the metal and move into bonds instead.

The sharp drop marked one of the metal’s weakest sessions in recent weeks and caught traders off guard after a strong run. Volumes surged as stop-loss orders were triggered on the way down.

Analysts said the move reflected shifting expectations on interest rates, with markets betting that borrowing costs will stay higher for longer. Strong economic data has reinforced the view that central banks are in no hurry to ease.

Gold remains a popular safe haven in uncertain times, but for now the pull of higher yields is winning. Investors will watch central bank signals closely for the next move in the precious metal.