BeInCrypto • October 7th 2026, 3:21 PM
Gold and Silver Shed $400 Billion in Minutes. Here’s What Really Happened
Key Summary
Gold and silver prices plummeted by $400 billion in a matter of minutes due to rising US bond yields, which reached their highest level since 2002. The drop in metal prices does not reflect a loss of value in metal ownership, as the prices used to value the metals changed. This phenomenon occurs when bond yields rise, as holding metals means giving up interest income, prompting traders to sell. Despite the volatility, analysts believe rising bond yields are bullish for precious metals, and 2026 could be its most volatile year since 1982.
Please see our real time news feed on our Home Page
Overview of the Situation ## The price of gold and silver dropped by $400 billion in a short period due to rising US bond yields. The 10-year Treasury yield reached 5.35%, its highest level since 2002. This caused gold to slide from $4,120 to $4,066 in a 15-minute window, and silver to fall from $60.13 to $59.00. ## Why Rising Bond Yields Affect Gold and Silver Prices ## Gold and silver pay no interest, so when bonds pay more, holding metal means giving up that income. Traders were bracing for a $39 billion sale of 10-year notes and minutes from the Federal Reserve's September meeting, which raised rates to 3.75%–4.00%. CME FedWatch data showed a 69% chance of another hike in December. ## Expert Analysis ## Despite the volatility, analysts believe rising bond yields are bullish for precious metals. Schiff wrote,
#Gold#Silver#US#Yields#PreciousMetals#MarketVolatility