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Gold, silver and bitcoin fell in tandem as investors raised their expectations for further Federal Reserve interest rate increases, with inflation fears driving a broad retreat from assets sensitive to monetary policy.
Precious metals bore the brunt of the selling, while the cryptocurrency market tracked the risk-off move lower.
Fed Rate Path Drives the Selling The catalyst is straightforward: when traders price in a more aggressive tightening cycle, assets that carry no yield — gold and silver chief among them — lose a key part of their appeal.
Higher rates lift the opportunity cost of holding non-yielding stores of value, and the market priced that dynamic in swiftly.
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