Precious metals experienced a fresh wave of selling on Oct. 2 that impacted the valuation of the bullion complex. Gold and silver erased more than $430B in combined market value within a 90 minute window, extending a rout that began on Sept. 28. During that earlier session, gold fell 3.4% and silver dropped 5%, wiping out $1.2T in combined value in a single day and pushing assets to seven week lows.

The declines are driven by a surge in the US 10 year Treasury note yield to a 19 year high and real yields reaching the highest levels since the 2008 financial crisis. Market participants price a 70% probability of a Federal Reserve rate hike in October, as a deadlock over the Strait of Hormuz keeps energy costs high and inflation sticky. Spot gold prices tumbled to below $4,160 an ounce, the lowest since early August; gold now sits 25.7% below its peak and silver has declined 49.4%.