Gold Crashes 3.4% as Bond Yields Soar, Bitcoin at Risk

Gold suffered its biggest one-day decline in two decades on September 28th, falling 3.4% to $4,110.55 per ounce. This move is statistically rare, with an average daily change of 0.05% since 2006 and a standard deviation of 1.19%. The Z score of -2.90 indicates that the decline was close to three standard deviations below the average.

The decline in gold prices followed rising U.S. Treasury yields, which reached 5.23% on September 28th, their highest level since 2007. The 10-year yield and 30-year yield also rose to 5.54%. Higher bond yields make non-yielding assets like gold less attractive, as investors can earn a higher return from government debt.

Bitcoin also fell, dropping below $83,000 after trading above $87,000 earlier in the month. The cryptocurrency is sensitive to Treasury yields and has faced pressure from rising bond yields and expectations of another Fed rate hike.