Gold, silver, and bitcoin decline as Fed rate hike expectations rise on inflation fears
By
Chloe Taylor
Baker's choice. Dense with flavour, light on filler.
Summary
Gold, silver, and bitcoin prices are falling as traders increase their bets on Federal Reserve interest rate hikes. The shift is driven by rising inflation risks, partly fueled by Middle East tensions pushing oil prices higher. ING strategist Ewa Manthey notes that higher real yields are creating headwinds for non-yielding assets like precious metals, as markets pivot from safe-haven demand back to rate and inflation concerns.
Key quotes
· 2 pulledThe escalation in the Middle East is pushing oil higher and lifting inflation risks, which in turn is reinforcing expectations that central banks stay tighter for longer.
That's pushing real yields higher — a clear headwind for non-yielding assets like gold and silver.
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