$BTC U.S. inflation turns markets upside down, and the dollar devours gold
1. U.S. dollar — rose
The dollar index (DXY) jumped above *102.00*, up from 101.49 before the report, and rose about 0.6% to 102.29 892b
The reason: Inflation came in higher than expected, meaning the Fed will raise interest rates in December, so people are buying dollars and bonds.
2. Gold — plunged
It fell more than *2%* in a single day.
- Yesterday, Monday, it was around *$4148* per ounce
- After the report, it dropped to *$4050* and touched *$4039*
- Futures fell 2.1% to *$4051.50* a8ba3c76
The reason:
When interest rates rise, the dollar strengthens. Gold does not pay interest, so people sell gold and move into dollars.
$BTC
#BTC #Dollar #Dold
1. U.S. dollar — rose
The dollar index (DXY) jumped above *102.00*, up from 101.49 before the report, and rose about 0.6% to 102.29 892b
The reason: Inflation came in higher than expected, meaning the Fed will raise interest rates in December, so people are buying dollars and bonds.
2. Gold — plunged
It fell more than *2%* in a single day.
- Yesterday, Monday, it was around *$4148* per ounce
- After the report, it dropped to *$4050* and touched *$4039*
- Futures fell 2.1% to *$4051.50* a8ba3c76
The reason:
When interest rates rise, the dollar strengthens. Gold does not pay interest, so people sell gold and move into dollars.
$BTC
#BTC #Dollar #Dold