Gold and silver tumbled, crypto fell after US inflation beat expectations, slashing rate-cut hopes. The data resets the macro timeline for both metals and digital assets.
Alpha Score of 58 reflects moderate overall profile with moderate momentum, strong value, weak quality, moderate sentiment.
A hotter-than-expected US inflation report sent gold, silver, and cryptocurrency prices lower on the session. The fresh data directly challenged the market's prevailing assumption that the Federal Reserve would begin cutting interest rates within the first half of the year. Traders repriced rate expectations sharply, pushing real yields higher and strengthening the dollar.
The inflation data showed price pressures running above the Fed's 2% target. That makes an early rate cut less probable. For assets that thrive on looser monetary conditions, the shift is immediate. Gold carries no yield, so it competes directly with real yields. When real yields rise, the opportunity cost of holding bullion increases. The same logic applies to silver. The dollar typically strengthens in this environment, adding further pressure on dollar-priced commodities.
Gold fell sharply after the release, breaking below a key technical level that had held for weeks. Silver dropped even harder, given its higher volatility and larger industrial demand component. Both metals have been tightly correlated with every inflation reading this year because the Fed's next move is the dominant macro driver. The market now sees the first rate cut as more likely in the second half of the year or later. That keeps a hawkish bias on both metals in the near term.
Bitcoin and Ethereum sold off in sympathy with the macro repricing. The crypto market has traded increasingly in line with risk assets during periods of macro stress. A hawkish repricing of the Fed's path dampens risk appetite and reduces expectations for speculative capital flows. The sell-off was orderly but broad, with most altcoins following the lead. The immediate decline reflected the same logic: tighter monetary conditions mean less liquidity flowing into digital assets. A sustained run of hot inflation could delay any crypto breakout past the second quarter.
The inflation surprise resets the clock on rate-cut timing. Traders now need to factor in the possibility of no cuts until late in the year. The next CPI print and the upcoming jobs report will determine whether the repricing accelerates or reverses. If labour data also comes in strong, the hawkish shift will deepen. If cooler prints emerge, the setup will reverse quickly. Until then, gold, silver, and crypto are likely to trade with a downward bias. Any rally will need to be earned by a downside surprise in data or a clear signal from the Fed that it sees a path to easing.
For a broader view on how macro shifts affect digital assets, see our full crypto market analysis.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.