CPI hits and turns into a downside surprise, sending the market into a sell-off; after a brutal plunge, gold launches a violent rebound. Now the Fed is stuck in a tough dilemma! Rate-hike expectations are fully priced in—yet gold doesn’t fall, it rises. Has Wall Street finally understood the Fed’s limitations?
#以太坊时隔七个月重返2600美元
September 11 saw a dramatic V-shaped reversal across global financial markets. When the U.S. August inflation data landed, inflation proved more resilient than expected, and the market immediately boosted the probability of a rate hike next week to 90%.
$龙虾
$LAB
$TA
Under traditional trading logic, a rate-hike “negative” would weigh on gold. At first, that was indeed the case: spot gold initially plunged, slipping below $4,300 and hitting a low of $4,292. But after a brief dip, massive buying stepped in, lifting gold all the way up by more than $100, with a peak above $4,402—delivering a textbook-style fightback from the brink.
In this CPI and PPI cycle, stubborn inflation signals have been released one after another. Costs such as computer components and housing continue to push prices higher. The market had already finished pricing in the negative sentiment early on. Once the CPI printed, the uncertainty vanished, shorts closed out in a concentrated wave, unleashing strong buying and driving gold’s rebound.
At a deeper level, the key lies in the Fed’s policy predicament. U.S. public debt has surpassed $40 trillion. High interest rates sharply raise the interest-servicing cost on Treasury debt, greatly shrinking the room for additional hikes. Institutional views point out that even if the Fed wanted to curb inflation, it would be difficult to sustain high rates for long.
On top of that, central banks worldwide continue to buy gold, and demand for safe havens provides support. With rate-hike expectations in play, gold has carved out an independent track. On one side, there’s pressure from potential hikes; on the other, constraints from massive debt. Caught between going forward and holding back, the Fed has inadvertently given gold strong support.#代币化股票持有者增长619.1% #空头爆仓推动以太坊反弹
#以太坊时隔七个月重返2600美元
September 11 saw a dramatic V-shaped reversal across global financial markets. When the U.S. August inflation data landed, inflation proved more resilient than expected, and the market immediately boosted the probability of a rate hike next week to 90%.
$龙虾
$LAB
$TA
Under traditional trading logic, a rate-hike “negative” would weigh on gold. At first, that was indeed the case: spot gold initially plunged, slipping below $4,300 and hitting a low of $4,292. But after a brief dip, massive buying stepped in, lifting gold all the way up by more than $100, with a peak above $4,402—delivering a textbook-style fightback from the brink.
In this CPI and PPI cycle, stubborn inflation signals have been released one after another. Costs such as computer components and housing continue to push prices higher. The market had already finished pricing in the negative sentiment early on. Once the CPI printed, the uncertainty vanished, shorts closed out in a concentrated wave, unleashing strong buying and driving gold’s rebound.
At a deeper level, the key lies in the Fed’s policy predicament. U.S. public debt has surpassed $40 trillion. High interest rates sharply raise the interest-servicing cost on Treasury debt, greatly shrinking the room for additional hikes. Institutional views point out that even if the Fed wanted to curb inflation, it would be difficult to sustain high rates for long.
On top of that, central banks worldwide continue to buy gold, and demand for safe havens provides support. With rate-hike expectations in play, gold has carved out an independent track. On one side, there’s pressure from potential hikes; on the other, constraints from massive debt. Caught between going forward and holding back, the Fed has inadvertently given gold strong support.#代币化股票持有者增长619.1% #空头爆仓推动以太坊反弹
