Gold and silver lost more than $550bn in a three-hour period as rising bond yields and increased expectations of interest-rate rises hit precious metals, while bitcoin also fell rather than acting as a safe-haven asset.
Gold declined 1.55% and silver dropped 2.75% during the early Asian session on Monday. The moves erased about $470bn from gold’s market value and a further $101bn from silver’s.
The sell-off intensified by mid-morning in India. Comex gold futures were down 2.11% at $4,197.40 an ounce, while silver had fallen 3.59% to $62.47.
Gold is now almost 25% below its record price of about $5,590, reached on Jan. 28 earlier this year. Silver’s percentage decline was larger, in line with its usual volatility, partly because it trades in a less liquid market.
Rising yields pressure precious metals
Geopolitical tensions had been expected to support demand for metals over the weekend. Iranian Foreign Minister Abbas Araghchi told NBC on Sunday that Tehran was prepared for a “doomsday” war if attacked. That followed reports that President Donald Trump was considering renewed airstrikes on Iran after the midterm elections.
However, the geopolitical premium was reflected in oil prices rather than gold and silver. Brent crude rose 2.52% to $107 a barrel, a move that adds to inflationary pressure.
Higher inflation can increase expectations of interest-rate rises. The CME FedWatch tool showed a 68.1% probability of a 25 basis point Federal Reserve rate rise in October.
The U.S. Dollar Index also reached 101.39, its highest level in two months, while 10-year and 30-year Treasury yields stood at 5.20% and 5.51%.
Gold does not pay interest, meaning that rising yields increase the opportunity cost of holding it. Peter Schiff made the same argument in a post cited in the report.
Bitcoin.com News reported last week that bond yields had reached a 24-year high, with Schiff, Bill Ackman and Arthur Hayes offering different explanations for the move.
Bitcoin also declined during the sell-off. It reached an intraday low of $82,780, down 2.7% over the same period in which the precious metals were falling. At press time, BTC was trading above $83,000.
PAX Gold (PAXG), a token backed by physical gold, followed the wider bullion market. It fell from approximately $4,276 to $4,186 during the session, meaning crypto investors holding gold onchain faced a similar decline to those trading futures.
The fall came despite U.S. spot bitcoin exchange-traded funds attracting $2.39bn last week, their largest weekly inflow of 2026. Bitcoin had also recovered towards $85,000 over the weekend, but those gains disappeared after yields moved higher.
Bitwise highlighted a similar pattern, arguing that institutions may view bitcoin as comparable to gold in theory but invest in it more like a technology asset. As a result, when yields rise, bitcoin can lose appeal alongside growth assets rather than benefiting from weakness in traditional safe havens.
