Hot CPI vs Strong Hard Assets: Why Gold, Silver, and Crypto Are Still Holding Up Despite Hawkish Pressure
Based on a combination of analysis from several market sources after the CPI, the current conditions show a conflict between bearish macro fundamentals and price action that is still quite strong on hard assets such as Gold, Silver, and Bitcoin. Hotter-than-forecast CPI data sent USD and Treasury yields up and reinforced expectations that the Fed would keep high interest rates longer. Some analysts call this condition "higher for longer" and tend to risk-off for stocks and crypto.
But on the other hand, gold and silver did not immediately collapse despite rising yields. Many analysts see safe haven demand, Middle East geopolitics, and central bank purchases that still support gold so that the downside becomes limited. Some sources even say gold is now in "macro tug-of-war," which is the pressure of yield and USD versus demand safe haven that remains strong.
For silver, volatility is greater because silver is not only precious metal but also industrial asset. When the CPI is hot and yields rise, silver is exposed to short-term bearish pressure. However, expectations of recovery of China-US supply chains and industrial demand such as EV and solar are still a bullish medium term factor. This explains why silver is still able to survive strong even though macro-wise it should be depressed.
As for crypto, most sources see the hot CPI as a bearish factor as it reduces the Fed's cut rate chances and strengthens the USD. But the crypto market now looks not fully bearish because many traders consider some inflation data has been priced before. This makes BTC and altcoins still able to survive after the initial volatility of news.
$BTC
$XAU
$XAG
Based on a combination of analysis from several market sources after the CPI, the current conditions show a conflict between bearish macro fundamentals and price action that is still quite strong on hard assets such as Gold, Silver, and Bitcoin. Hotter-than-forecast CPI data sent USD and Treasury yields up and reinforced expectations that the Fed would keep high interest rates longer. Some analysts call this condition "higher for longer" and tend to risk-off for stocks and crypto.
But on the other hand, gold and silver did not immediately collapse despite rising yields. Many analysts see safe haven demand, Middle East geopolitics, and central bank purchases that still support gold so that the downside becomes limited. Some sources even say gold is now in "macro tug-of-war," which is the pressure of yield and USD versus demand safe haven that remains strong.
For silver, volatility is greater because silver is not only precious metal but also industrial asset. When the CPI is hot and yields rise, silver is exposed to short-term bearish pressure. However, expectations of recovery of China-US supply chains and industrial demand such as EV and solar are still a bullish medium term factor. This explains why silver is still able to survive strong even though macro-wise it should be depressed.
As for crypto, most sources see the hot CPI as a bearish factor as it reduces the Fed's cut rate chances and strengthens the USD. But the crypto market now looks not fully bearish because many traders consider some inflation data has been priced before. This makes BTC and altcoins still able to survive after the initial volatility of news.
$BTC
$XAU
$XAG