Gold Plunges as Fed Rate Cut Doubts Rattle Markets—Safe Haven Loses Shine
Gold's glitter fades fast as traders ditch the classic safe-haven asset. The Fed's wavering stance on December rate cuts sparks a selloff—proving even bullion bends to macro winds.
Market jitters turn spotlight to crypto. While gold stumbles, decentralized assets like Bitcoin quietly rally. Another reminder: traditional hedges aren't what they used to be.
Wall Street's 'barbarous relic' just got more barbarous. Maybe it's time to admit—the smart money moved to digital stores of value years ago.
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The price of Gold tends to hold an inverse relationship with interest rates. That’s because the opportunity cost of holding gold rises when rates are high and falls when rates are low, making it more attractive relative to interest-bearing assets.
Fed Officials Undecided on December Rate Cut as Odds Drop
Kansas City Fed President Jeffrey Schmid, who was the only October FOMC member to dissent in favor of keeping rates unchanged, reiterated his view on Friday that inflation is “too hot.” He added that structural changes are behind the weakness in the labor market, and that a rate cut wouldn’t help boost jobs.
The odds of a rate cut next month are now seen as a coin flip on CME’s FedWatch tool, tallying at 49.6% compared to 66.9% a week ago and 94.4% a month ago.
