These figures are nearly double the Fed’s 2% target. This disconnect between policy goals and consumer expectations further supports the case for inflation hedges.
Gold Pulls Back as Bitcoin Gains Ground
Gold price dropped below the psychologically significant $4,000 level and hit strong support at $3,900.
This decline coincides with Bitcoin’s brief rally to $116,000 level, suggesting a rotation of capital from traditional safe havens to digital assets. However, both markets are reacting to the same underlying forces: Fed uncertainty, inflation dynamics, and liquidity stress. Despite the sharp drop in gold over the past week, the price is now recovering from initial support levels. This rebound suggests that the correction may be short-lived.
On the other hand, Bitcoin has traded within a narrow range between $100,000 and $125,000 for over four months. This consolidation period indicates price compression, increasing the likelihood of extensive breakouts. If Bitcoin breaks above $125,000, the price could surge toward $180,000 in the coming months.
The daily chart for Bitcoin shows intense volatility within a broadening wedge pattern, with key support at $100,000.