Gold fell 3.4% on Sept. 28 in one of its rarest single-day declines in two decades, as surging U.S. Treasury yields and renewed Federal Reserve rate-hike bets hit non-yielding assets. Bitcoin faced the same pressure, slipping toward $83,000, even as U.S. spot Bitcoin ETFs kept pulling in fresh inflows.
A once-in-decades decline
The Kobeissi Letter said gold fell 3.4% on Sept. 28, a move it called one of the rarest single-day declines of the last two decades. Since 2006, gold has averaged a daily change of +0.05%, with a standard deviation of 1.19%, putting Monday's selloff close to three standard deviations below the mean. According to The Kobeissi Letter: "Today's drop in gold prices was highly unusual."
Spot gold fell as much as 4% during the session to $4,110.55 per ounce, its lowest level in more than seven weeks, before recovering some losses to $4,136.81, Reuters reported. U.S. gold futures closed 3.5% lower at $4,168.40.
Rising yields squeeze gold and Bitcoin
The 10-year Treasury yield reached 5.23% on Sept. 28, its highest level since 2007, while the 30-year yield touched 5.54% and the more Fed-sensitive two-year climbed to around 4.92%. Higher yields raise the return on government debt while gold pays no interest, and a stronger dollar makes gold pricier for buyers using other currencies.
Oil added to the pressure after President Donald Trump rejected Iran's proposal for a seven-day ceasefire, pushing Brent crude back above $100 per barrel. Markets raised bets on another Fed rate hike by December, after the central bank lifted its target range by 25 basis points to 3.75%-4% on Sept. 16. Silver lost around 4.5% on the same day.
Bitcoin traded near $83,000 on Sept. 29, roughly 5% below its Sept. 21 high near $87,400. Monday alone saw Bitcoin drop toward $82,600 before recovering, while the S&P 500 lost 0.8%, the Nasdaq Composite fell 0.9% and the Dow Jones Industrial Average declined 0.7%.
Bitcoin ETF inflows offer a counterweight
Demand has not disappeared. U.S. spot Bitcoin ETFs recorded $2.39 billion in net inflows during the Sept. 21 to Sept. 25 week, with positive flows across all five sessions and BlackRock's IBIT accounting for roughly $1.16 billion of the total. U.S. spot Bitcoin funds have now collected roughly $5.3 billion since August, pulling 2026 flows back into positive territory after July's net outflows.
Source: crypto.news
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