Scene IV. The gods bring Alberich to their home, and order him to

command his gnomes to bring them all the gold. The gnomes bring it. Alberich gives up the gold, but keeps a magic ring. The gods take the ring. So Alberich curses the ring, and says it is to bring misfortune on any one who has it. The giants appear; they bring the goddess Freia, and demand her ransom. They stick up staves of Freia's height, and gold is poured in between these staves: this is to be the ransom. There is not enough gold, so the helmet is thrown in, and they also demand the ring. Wotan refuses to give it up, but the goddess Erda appears and commands him to do so, because it brings misfortune. Wotan gives it up. Freia is released. The giants, having received the ring, fight, and one of them kills the other. This ends the Prelude, and we come to the First Day.

The scene shows a house in a tree. Siegmund runs in tired, and lies down. Sieglinda, the mistress of the house (and wife of Hunding), gives him a drugged draught, and they fall in love with each other. Sieglinda's husband comes home, learns that Siegmund belongs to a hostile race, and wishes to fight him next day; but Sieglinda drugs her husband, and comes to Siegmund. Siegmund discovers that Sieglinda is his sister, and that his father drove a sword into the tree so that no one can get it out. Siegmund pulls the sword out, and commits incest with his sister.