US inflation and Fed member Waller's hawkish message caused a decline in gold and crypto markets
Fed official Waller's statements and high inflation data pressured the markets
Quick Look
- The ounce price of gold in global markets lost more than 2% in value due to the Fed's possible aggressive monetary policy and high CPI data.
- Bitcoin fell below 75 thousand dollars due to selling pressure.
AI-generated summary
Why It Matters
In the USA, CPI data were above expectations in October, increasing inflationary pressure.
The ounce price of gold in global markets lost more than 2 percent in value due to the pressure created by Fed Board Member Christopher Waller's statements that a more aggressive monetary policy could be implemented if inflation continues to rise and the Consumer Price Index (CPI) data.
The ounce price of gold in the spot market dropped by more than 2 percent as of 17:00 Turkish time today and was traded at $4,050.
Thus, the precious metal fell below the support of $ 4,100, which is technically considered the critical threshold. Analysts point out that high interest rates reduce the appeal of non-interest-bearing gold.
In parallel with the sharp decline in the precious metal, the ounce price of silver fell to 51 dollars with a loss of more than 1.5 percent in the spot market.
Bitcoin fell below 75 thousand dollars
Increasing selling pressure in the cryptocurrency markets has reduced the price of the leading cryptocurrency bitcoin below 75 thousand dollars.
According to data from analysis company CoinMarketCap, the total value of the global cryptocurrency market decreased by approximately 1.31 percent in the last 24 hours, falling to 2 trillion 460 billion dollars.
Bitcoin, the largest cryptocurrency in terms of market value, has lost nearly 1 percent in value in the last 24 hours. The weekly value loss of bitcoin, which was traded at $ 73 thousand 759 as of 17:00 Turkish time, approached 5 percent.
The decline in Bitcoin also negatively affected the altcoin market. The price of Ethereum, which ranks second in terms of market value, decreased by 1.20 percent to 2 thousand 68 dollars.
Fed Board Member Christopher Waller stated that even if the data shows a slowdown in inflation, the bank should increase short-term borrowing costs next month, and if the outlook worsens, a half-point interest rate increase should be considered.
Consumer Price Index (CPI) in the USA increased by 0.4 percent on a monthly basis in October, exceeding market expectations.
Market expectations were for inflation to be 0.3 percent on a monthly basis. CPI increased by 0.6 percent in September.
Open Questions
- Will the Fed increase interest rates at the next meeting?
