Spot gold prices plummeted nearly 4% on Sept. 28, leading a broader crash across the precious metals complex. Silver dropped 5% on the day, and the combined market capitalization for both metals shrank by $1.2 trillion. This sell off pushed the assets to seven week lows as the US 10 year Treasury note yield climbed to a fresh 19 year high.

The decline follows an impasse over the Strait of Hormuz that has kept energy costs elevated, pressuring the Federal Reserve to raise interest rates to combat sticky inflation. During the intraday slide, spot gold prices fell below $4,200 per ounce for the first time since Aug. 5 as rising bond yields reduced the appeal of non yielding assets.