Precious metals and bitcoin retreated on Wednesday as shifting expectations for U.S. monetary policy dampened investor appetite for non-yielding assets.
Spot gold, silver, and the leading cryptocurrency all posted losses as traders repriced the likelihood of a Federal Reserve interest rate increase.
This dynamic has rippled across risk assets, contributing to a sharp 5% late-session drop in the Nasdaq Composite as technology stocks faced a broad sell-off.
The repricing reflects a broader market shift toward pricing in tighter financial conditions.
Rising inflation fears have pushed rate-hike probabilities higher, directly pressuring assets that offer no yield.
This dynamic has rippled across risk assets, contributing to a sharp 5% late-session drop in the Nasdaq Composite as technology stocks faced a broad sell-off.
The weakness in gold follows a recent slide to a two-month low, driven by a strengthening dollar and renewed uncertainty surrounding the U.S.-Iran conflict.