Gold Retreats as Risk Appetite Returns; Crypto Markets Watch Fed Rate Outlook

Spot Gold prices fell 1.5% as Middle East tensions eased, diminishing safe-haven demand. The Israel-Iran ceasefire has sparked a broad equities rally, with investors shifting to risk-on assets. Gold's monthly gains now stand at a mere 0.2%, down from 3.7% at their peak.

The precious metal faces a pivotal moment as Fed rate cut probabilities loom. Markets price in 71.3% odds of a 25bps September cut, with December potentially seeing rates between 3.50-3.75%. Lower yields typically benefit non-interest-bearing assets like gold - and by extension, cryptocurrencies.

Digital assets often mirror gold's reaction to monetary policy shifts. As Treasury yields potentially decline, both traditional and crypto safe havens could see renewed interest. The coming FOMC meetings may prove crucial for asset allocation strategies across traditional and digital markets.