Gold prices plunged to a two-year low as investors fled from precious metals.
It was the second day of decline for gold as the economy improves and fears of inflation in the U.S. ease. Gold is often purchased as a hedge against inflation.
The price of an ounce of gold was down 7% to as low as $1,398 an ounce Monday, after falling 5% on Friday. The recent all-time high was $1,924 an ounce. Silver and copper prices also dipped.
Concerns that China’s formidable economic expansion is slowing sent jitters through the market. The Asian giant reported slower than expected economic growth in the first quarter, provoking worries about the sustainability of Europe’s recovery.