US PPI Surge Boosts Rate-Hike Bets, Weighing on BTC and XAU
The US Producer Price Index (PPI) rose by 5.4% annually in August, surpassing market expectations of 5.3%. This increase has heightened concerns that the Federal Reserve will adopt a stricter monetary policy to curb inflationary pressures.
As a result, investor attention remains on Friday's release of the US Consumer Price Index (CPI) report, which could provide additional insight into the direction the Federal Open Market Committee (FOMC) would take. A higher-than-expected CPI print would signal persistent inflationary pressures in the US economy, increasing the likelihood of an interest rate hike.
Bitcoin and Gold are experiencing a correction, with Bitcoin trading around $77,000 and Gold hovering around $4,365. The CME FedWatch tool has edged above 70% following the PPI report, indicating growing expectations of a rate hike.