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Gold Drops 2% to $4,100, Bitcoin Slides as Dollar Nears 1-Year High

Gold futures fell 2.1% to about $4,100 an ounce and bitcoin lost 2.5% on Wednesday, Oct. 7, as the dollar index rose to 102.47 ahead of the Fed minutes.

By Global Terminal Staff · · 3 min read

Stacked gold bullion bars with stamped markings
Photo: Jingming Pan / Unsplash

Why it matters

  • Gold futures fell about 2.1% to $4,100.10 an ounce on Wednesday morning, Oct. 7, and bitcoin dropped about 2.5% to near $83,400, according to Yahoo Finance data.
  • The dollar index rose about 0.6% to 102.47, its highest daily level in Yahoo Finance's one-year data, as the 10-year Treasury yield climbed back above 5.3%.
  • Both assets are well below their peaks. Gold futures are about 23% under their Jan. 29 close, and bitcoin is about 32% below its October 2025 high.

Analysis: this piece includes our interpretation of the facts reported.

Gold futures fell about 2.1% to $4,100.10 an ounce by 12:45 GMT on Wednesday, Oct. 7, and bitcoin dropped about 2.5% to roughly $83,400, according to Yahoo Finance data. The dollar index rose about 0.6% to 102.47, its highest daily level in a year of Yahoo Finance data, as investors waited for minutes of the Federal Reserve's September meeting, due later on Wednesday, according to the Fed's calendar.

Why are gold and bitcoin falling together?

The common driver is a stronger dollar and higher yields. Gold fell 2% on Wednesday, pressured by a stronger U.S. dollar as investors awaited the Fed minutes for clues on future rate hikes, Trading Economics reported. Markets still price an over 80% chance of a December hike, according to CME FedWatch, the site said. The 10-year Treasury yield was near 5.34%, up from 5.27% on Tuesday, Yahoo Finance data show.

Crypto added its own pressure. About $550 million of crypto positions were liquidated over 24 hours, Bloomberg reported, citing Coinglass data. Investing.com said renewed Iranian attacks in the Strait of Hormuz pushed Brent above $102 a barrel and stoked fears that rates stay high. "A hawkish read could lift yields and the US dollar, keeping pressure on risk assets," Rachael Lucas, an analyst at BTC Markets, said, according to Bloomberg.

Gold, bitcoin and the dollar in numbers

AssetLevel, Oct. 7 (approx. 12:45–12:55 GMT)Change vs. prior closeChange since Dec. 31, 2025
Gold futures ($/oz)4,100.10−2.1%−5.6%
Silver futures ($/oz)59.48−2.8%−15.2%
Bitcoin ($)83,386−2.5%−4.7%
Ether ($)2,568−4.8%n/a
Dollar index (DXY)102.47+0.6%+4.3%
EUR/USD1.1173−0.4%n/a

Source: Yahoo Finance chart data. Crypto changes are against the Oct. 6 daily close at midnight UTC.

How far are gold and bitcoin from their highs?

Far. Gold futures settled at $5,318.40 on Jan. 29, their highest close in Yahoo Finance's one-year data, so Wednesday's level is about 23% lower. Trading Economics puts spot gold's all-time high at $5,608.35, also in January. Silver has fallen harder, down about 48% from its Jan. 26 close of $115.08.

Bitcoin is about 32% below $123,355, its Oct. 8, 2025 close and the highest in Yahoo Finance's one-year data. It has also recovered about 42% from its June 30 low of $58,559.

What could support gold from here?

Long-term buyers. "Gold's price action looks a little worrying," Jeff Toshima, former Tokyo director of the World Gold Council, said in BullionVault's Monday report. "I expect strong buying interest from central banks and long-term investors on dips toward $4000," he added. China's central bank extended its gold buying streak to 23 consecutive months in September, Trading Economics reported, citing official data.

Speculators have been cutting bets. Managed-money net long positions in gold fell 17.8% over five weeks as prices dropped 10.3%, BullionVault said, citing CFTC data.

The dollar's climb also reflects a weaker euro; see our report on the euro's 17-month low. For why yields matter to every asset, read our explainer on bond yields. Track gold, bitcoin and the dollar on our world markets page and the Fed meeting on Oct. 27–28 on the economic calendar.

Sources