US Inflation Rise Triggers Gold and Bitcoin Slump as Fed Rate Hike Bets Grow

US inflation data showed a slight rise in August, beating expectations and pushing up Treasury yields. This increase in interest rates has made bonds more attractive to investors compared to non-yielding assets like gold and Bitcoin.

The 10-year Treasury yield reached its highest level since October 2023, causing the price of gold to drop by over 1% and Bitcoin's value to decline as well.

Investors are now awaiting the US Consumer Price Index report, which will further influence expectations for a Federal Reserve rate hike. A higher inflation rate could lead to increased chances of a Fed rate hike, impacting market movements and the prices of assets like gold and Bitcoin.