Gold prices fell more than 1% to their lowest in three-and-a-half months on Monday as elevated bond yields and a firmer US dollar dampened bullion demand, even as riskier assets dropped after grim China economic data.

A stronger dollar makes gold expensive for overseas buyers, while higher Treasury yields raise the opportunity cost of holding zero-yield bullion.

Spot gold was down 0.4% to $1 804.01/oz as of 11:24 GMT, after hitting its lowest since January 31 at $1 786.60 earlier in the session. US gold futures fell 0.3% to $1 802.20.

“Spot gold may not stray far from $1 800, suppressed by the might of King Dollar and elevated Treasury yields, while supported by the looming prospects of a recession,” said Han Tan, chief market analyst at Exinity.

Gold prices are down over 13% since scaling a near-record peak of $2 069.89 an ounce in March as the US dollar and Treasury yields were bolstered by aggressive rate hike bets.

“Having now fallen through the psychologically important threshold of $1 800 an ounce and with the hawkish monetary policy more likely to strengthen than weaken, it is hard to see where gold can now find a short-term foothold,” Rupert Rowling, market analyst at Kinesis Money, said in a note.

The US dollar consolidated gains near a two-decade peak while equities, oil prices and riskier currencies took a hit after an unexpectedly weak economic data from China highlighted fears about a slowdown in growth.

Silver has found itself caught up in the broader sell-off in equities and gold, being punished for being an industrial metal at a time when growth forecasts are being trimmed and for its lack of yield at a time of rising interest rates, Rowling added.

Spot silver gained 0.3% to $21.14 per ounce, after slumping to its lowest since July 2020 in the last session.

Platinum eased 0.2% to $936.21 and palladium fell 0.8% to $1 928.54.