Producers of metals, grains and other raw materials fell as the U.S. dollar hit a new 52-week high against rivals.
Wall Street strategists warn Federal Reserve hikes this year are increasingly likely in the wake of Chairman Kevin Warsh's statement last week and "sticky" price increases in recent data.
"The Fed's inflation problem has gotten unambiguously worse," warned economists at brokerage Bank of America Global Research, who raised their forecast for Fed rate hikes this year following the central bank's statement last week.
Gold futures fell $52, or 1.2%, to $4129.90 a troy ounce, and are down by more than 22% from record highs earlier this year.
Silver futures shed $3.51, or 5.4%, to $62.02 a troy ounce, the lowest close since December.
