Gold, silver and bitcoin fall as traders up Fed rate hike bets
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- Gold fell 2.4% to about $4,161.63 per ounce, while U.S. gold futures dropped 2.2% to $4,194.90/oz.
- Silver slid 2% to $64.01/oz and futures fell 1.6%, with related ETFs and miners also posting losses (ProShares Ultra Silver ETF -2.8%, iShares Silver Trust ETF -1.4%, First Majestic Silver -3.8%, Hecla Mining -3.1%).
- Bitcoin lost roughly 1.3% to trade near $61,049, amid heightened expectations of a Fed rate hike.
- Fed rate expectations sharpened, with CME FedWatch showing a 98.2% probability of a steady rate at the next meeting and a 40% chance of a hike by October.
- Ewa Manthey of ING said rising real yields and inflation risks from Middle East tensions are creating a headwind for non‑yielding assets like gold and silver.
- Citi analysts warned gold could tumble an additional 20% by autumn if the current trend continues.
- SpaceX appears in a CoinDesk headline as a non‑Fed factor pressuring Bitcoin, an angle not covered in the main article.
Why it matters: Investors holding gold, silver or bitcoin see immediate portfolio erosion as real yields rise and Fed rate‑hike odds climb, while central‑bank reserve reallocation and a potential USD weakening could later buoy gold, making the current sell‑off a short‑term cost for risk‑averse investors.
