US Inflation Shock Sends Gold, Bitcoin Tumbling Amid Fed Rate Hike Bets

US inflation data released on September 10 sent shockwaves through financial markets, with gold and Bitcoin feeling the brunt of the impact.

The US producer price index (PPI) rose 0.4% in August, matching forecasts, while annual PPI inflation accelerated to 5.4%, slightly above the expected 5.3%

This hotter-than-expected reading triggered a sell-off across financial markets, with even traditional inflation hedges struggling.

Spot gold fell more than 1% to $4,350 after previously trading above $4,400, while Bitcoin declined in value.

The S&P 500 also weakened as investors reassessed the outlook for interest rates, with Treasury yields surging higher.