US rate at 5.35%: gold and silver stall, Bitcoin below $84,000

Bad day for safe havens. The yield on the 10-year American debt crossed 5.35% this Wednesday, October 7, a level that the markets had not seen since 2002. Gold is falling, silver is stalling and Bitcoin remains stuck below $84,000. Did you think the yellow metal protected you from everything? Not a US Treasury that pays more than 5% per year without risk.

The US 10-year rate returns to its 2002 peak

Imagine an American saver this morning. His broker offers him a loan to the federal government for ten years against 5.35% per year, guaranteed. Opposite, a bar pays no interest.

The Kobeissi Letter, a widely followed American financial letter on It also notes American real estate rates at their highest level in three years. The 30 year old is moving around 5.70%.

The fuel for this increase is known. Oil remains under pressure after new tanker attacks in the Strait of Hormuz, fueling inflation. The Federal Reserve (Fed) raised rates by 25 basis points in September, its first rate hike since 2023, to between 3.75% and 4%.

Gold and silver pay the rate bill

An ounce of gold was still worth nearly $4,160 at the start of the day. FXStreet has since risen to a session low of $4,066, a two-month low. Money does worse. Starting from $61 per ounce, it was trading at $59.77 at the start of the afternoon, down 2.6%, after bottoming at $58.99.

The war in the Middle East should have supported precious metals. But an asset that earns no interest loses its appeal when the American government pays 5.35%, and the strong dollar makes the ounce more expensive for all foreign buyers.

Let’s be fair, central banks continue to buy. China has increased its gold reserves for the 23rd consecutive month. Delegates to the annual conference of the London Bullion Market Association, the organization that oversees the London precious metals market, see an ounce at $5,013 within twelve months.

Bitcoin absorbs the rate shock with the Nasdaq

Bitcoin is not immune to the movement. It fell back below $84,000 and CoinDesk recorded $547 million in liquidations in 24 hours on the crypto market, that is to say leveraged positions forcibly closed by the platforms. During the night, the price dropped nearly $2,000 in twenty minutes according to The Kobeissi Letter. Futures contracts on the Nasdaq 100 also fell this Wednesday.

However, one detail changes the reading. Also according to CoinDesk, US spot Bitcoin ETFs collected another $119 million on Tuesday, their fourth day of inflows in five sessions.