Updated from 10:12 a.m. EDT

Metals prices were plunging Friday as the dollar rallied on the back of rising yields on U.S. government bonds.

Benchmark contracts for gold were off $13.30, or nearly 2%, at $651.90 an ounce, while silver was shedding 37 cents at $13.11 an ounce in recent New York trading. Copper contracts were down 12 cents at $3.26 a pound.

"The bears appear to have taken over control in several asset markets as higher-interest-rate-driven apprehensions have dented stock markets, the bond market and the precious-metals complex," writes Jon Nadler, an analyst at Montreal bullion dealer Kitco, in a daily market brief.

The broad dip in metals was mainly being driven by an increase in the greenback, itself spurred on by surging bond yields. The 10-year Treasury was recently yielding 5.15%.

The rising yields had the effect of making dollars more attractive to investors seeking better returns on their money. In turn, that undermined metals. Dollar-denominated assets tend to fall in price as the value of the U.S. currency climbs.

One dollar was recently buying 121.76 yen, up from 120.98 late Thursday. One euro was worth $1.3341, down from $1.3428 previously.

The metals-related exchange-traded funds took their lead from the futures market. The streetTracks Gold Shares ( GLD - Get Report) was losing 0.6%, and the iShares Silver Trust ( SLV - Get Report) was off 0.7%. The PowerShares DB Base Metals ( DBB - Get Report) was tumbling 2.2% in recent action.

As for the miners, Credit Suisse initiated coverage of Eldorado Gold ( EGO - Get Report) with an outperform rating and Golden Star Resources ( GSS - Get Report) with a neutral rating.

Shares of Eldorado were lower by 1%, and Golden Star was down 1.1%.