Gold Extends Losses, Tumbles to $1,788

Gold extended its losses Monday morning, with the spot price tumbling $39.92, or 2.2%, to $1,787.76 per ounce as of 10:02am ET.

Silver dropped alongside the yellow metal, by $0.75, or 1.1%, to $40.61 per ounce.

Precious metals stocks retreated as well, with the Philadelphia Gold & Silver Index (XAU) down 1.2% to 213.35 in morning trading.

The sell-off in precious metals coincided with a decline in risk aversion and a broad-based rally in the equity markets. The Dow Jones Industrial Average (DJIA) climbed 176.87 points, or 1.6%, to 11,461.41, while the CBOE Volatility Index (VIX) fell 7.8% to 32.86.