FXStreet reports that the Fed kept rates unchanged at this meeting, two officials voted for a rate hike, and the dollar was broadly flat. The original text provides only the headline and summary, without giving the rate range, the identities of the voters, or the specific performance of the dollar index.
Spot gold fell below the 100-hour moving average of $4,026.50 and was trading at around $4,025, down about $41, or 1.03%. The author believes that higher U.S. bond yields, a stronger U.S. dollar, and market expectations for further tightening by the Federal Reserve have made gold's rebound unsustainable; gold prices fell to $3,975 last Friday, the lowest since mid-July, and rebounded to above $4,000 at the beginning of this week.
The price of gold fell below the 100-hour moving average, reflecting the suppression of rebound space by interest rate expectations and the strength of the U.S. dollar, and the technical and macro aspects resonated. Traders can pay attention to whether the subsequent trend of U.S. bond yields and the U.S. dollar can continue this suppressive logic, as well as the impact of the previous low area on market sentiment.
The Nasdaq Composite Index and the Nasdaq 100 Index both fell about 1.5%, both falling below their 100-day moving average. The S&P 500 only fell about 0.50% and held key daily support. The 100-day moving average of the Nasdaq Composite Index is at 26254.52, and the 100-day moving average of the Nasdaq 100 Index is at 29559.42. The author regards these two moving averages as the boundary between long and short risks. The following focuses on the range of 25831 and 28822 to 28953. The reaction to the financial report intensified the polarization, with Microsoft falling slightly and Alphabet falling about 12% due to its AI investment narrative.
The initial annualized GDP value of the United States in the third quarter was 3.4%, which was higher than the market expectation of 3.2% and slightly higher than the Atlanta Fed's GDPNow forecast of 3.3%. Among the sub-items, investment contributed 3.27 percentage points, and consumer spending contributed about 2.52 percentage points. Net exports were a significant drag, and actual final sales only grew by 1.7%, lower than the 2.0% expectation. The core PCE price index was 2.5%, slightly above expectations of 2.4%.
Giuseppe Dellamotta thinks gold may rebound in the short term as better-than-expected U.S. PMI eases growth concerns, worries about an Iran strike are dashed, and real yields fall. Gold is approaching the key support area of 3,885. If the price is in place, buyers may enter the market to rebound. If it falls below, it will look towards 3,500. The focus this week is Wednesday's FOMC decision, where the market is generally expected to keep the policy on hold and an unexpected interest rate hike will trigger a gold sell-off.
The author breaks down the short-term logic into two main lines: the fall in actual yields reduces the opportunity cost of gold holdings, while the disappearance of the risk premium in the Middle East takes away the previous safe-haven support. With the two hedging against each other, the gold price is more like oscillating within a range rather than choosing a direction unilaterally. The real pricing power this week falls on Wednesday's FOMC, where the consensus is to hold on unchanged. The risk point suggested by the author is that unexpected interest rate hikes may trigger selling pressure. For traders, rather than betting on direction in advance, it is better to track the effectiveness of key support areas and the actual market reaction once the resolution lands.
Bitcoin fell nearly 2% to about $79,800 in early Asian trading on Monday, falling below $80,000 as traders reduced risks ahead of the Federal Reserve meeting. Ethereum fell nearly 3% to above $2,300, XRP fell about 3% to $1.28, and other major coins were also generally lower. Traders are watching Wednesday's press conference to see whether Federal Reserve Chairman Kevin Warsh hints at a rate hike in December, which could tighten liquidity and further pressure cryptocurrencies and stocks.
Cryptocurrencies were broadly lower ahead of the Federal Reserve meeting, with traders' risk-reducing behavior signaling increased market sensitivity to tighter liquidity. This macro sentiment deserves the attention of gold and foreign exchange traders, especially the Fed Chairman's statement on raising interest rates in December, which may trigger a coordinated reaction in the US dollar and safe-haven assets.
The world gold spot price closed down US$28 on October 23 to US$3,994 per ounce, the lowest since mid-July, with a cumulative decline of 4% that week. Rising oil prices triggered concerns about inflation and reinforced expectations that the Federal Reserve will maintain high interest rates, which was the main reason for the decline in gold prices. The Federal Reserve policy meeting next week is expected to keep interest rates unchanged, and the market is pricing in a 78% probability of raising interest rates in December.
The price of gold fell below a key psychological mark and hit a three-month low, reflecting that inflation concerns caused by rising oil prices are strengthening market expectations for the Federal Reserve to maintain high interest rates, thereby weakening the appeal of holding gold, a non-interest-bearing asset. If the Federal Reserve keeps interest rates unchanged but releases a hawkish signal at next week's meeting, it may further solidify expectations for a December interest rate hike. Traders need to pay attention to marginal changes in policy language and market interest rate pricing, which will be the core variable for short-term fluctuations in precious metals.
The U.S. PPI in September was 6.3%, higher than the expected 5.3%, but the 10-year U.S. Treasury yield still fell 9.9 bps to 5.09%, and the U.S. dollar weakened across the board. There are rumors in the market that an AI-themed fund may have been liquidated. Its AUM may be $40 billion, with heavy holdings including Nebius, Bloom, Lumentum and CoreWeave. The decline in yields was interpreted as the market's concerns about AI-related credit risks, and attention will be paid to Federal Reserve Warsh's speech at the IMF roundtable.
The decline in U.S. bond yields coincided with the overall weakening of the U.S. dollar, breaking the normal reaction after inflation data exceeded expectations, indicating that the market's short-term trading focus turned to the credit risks caused by rumors of AI-themed fund liquidations. For gold, the weakening of the U.S. dollar constitutes a supporting variable, but it is more necessary to observe whether credit risks evolve into liquidity shocks, which often complicates gold's hedging logic. The follow-up speech by the Federal Reserve Warsh at the IMF roundtable is a key window for judging changes in policy expectations.
Why we picked this
原文把美债收益率下行与 AI 基金爆仓传闻并置,为观察 AI 交易风险如何传导到美债和美元提供了一个时点切面。
U.S. PPI rose 1.3% month-on-month and 6.3% year-on-year in September. Wall Street economists accordingly raised their September core PCE forecast to 0.32% from 0.25% in August, and warned that the Federal Reserve still has the risk of continuing to raise interest rates. The core PCE annual rate is expected to rise to 3.1%; market pricing shows that the probability of the Federal Reserve raising interest rates at the end of this month is 29%, and the probability of raising interest rates at least once before December is 91%.
PPI exceeded expectations and led to an upward revision of the core PCE forecast. The market's pricing for the Federal Reserve to continue raising interest rates has significantly increased. The core PCE forecast for September has been raised to 0.32%. For gold, rising interest rate expectations usually increase the opportunity cost of holding and constitute a headwind, while the US dollar may gain support from the strengthening of interest rate expectations. It is worth paying attention to whether subsequent core PCE data further confirms this logic.
The CME FedWatch tool shows that the market's probability of a 25 basis point interest rate hike at the Federal Reserve's FOMC meeting on October 28 dropped from 50% to 27.1%. Market pricing has changed significantly in the past day.
The probability of the Federal Reserve raising interest rates in October dropped from 50% to 27.1% in a single day, indicating that the market's pricing of the short-term tightening path has significantly cooled down. This change may ease the dollar's support from interest rate expectations and affect the holding cost logic of non-interest-bearing assets such as gold. Traders need to pay attention to whether subsequent statements from Federal Reserve officials and economic data will further revise this expectation.
Pantheon Macroeconomics said September CPI data left the Fed with little room for pause. Overall CPI rose 0.6%, in line with expectations, and core CPI rose 0.3%, 0.1 percentage points higher than consensus expectations. The agency expects one more interest rate hike before the end of the year.
The higher-than-expected core CPI narrowed the Fed's room to pause interest rate hikes, and the market's expectations that interest rates will remain high or be further tightened may increase, which logically puts pressure on the non-interest-bearing asset gold. Traders will need to pay attention to subsequent Fed officials' interpretation of the data and the reaction of the yield curve.
The Philadelphia Fed business index in October was +20.9, lower than the expected +28.4 and the previous value was +37.8. Sub-indicators such as new orders, shipments and employment fell back but remained positive, while the price paid index fell while the price obtained index rose. The author believes that the market is beginning to worry about economic growth, with the 10-year U.S. Treasury yield falling and the yield curve flattening.
The Philadelphia Fed Business Index fell significantly from the previous value of 37.8 to 20.9 and was lower than expected. New orders, shipments, employment and other sub-categories simultaneously cooled down but are still in the expansion range, indicating that the manufacturing momentum is weakening rather than shrinking. Market concerns about economic growth have pushed U.S. bond yields downward and the yield curve flattened, which will affect the safe-haven pricing logic of the U.S. dollar and gold. Traders need to pay attention to whether subsequent regional Fed data will continue this slowdown signal.
U.S. Treasury yields fell on Thursday, with the 10-year Treasury yield falling more than 13 basis points to 5.056%, as investors turned to bonds for safety amid a selloff in technology stocks. U.S. wholesale prices rose 6.3% year-on-year in September, the largest increase since 2022, and CPI rose 3.7% year-on-year, which was also higher than expected. The interest rate market expects to raise interest rates by at least 25 basis points before the end of the year, and expectations have not changed much.
U.S. bond yields fell as funds turned to safety amid the sell-off in technology stocks. At the same time, inflation data exceeded expectations but the interest rate market expected little change in interest rate hikes at the end of the year. This put gold in the context of a game between safe-haven demand and real interest rate expectations. The foreign exchange market needs to pay attention to whether the contraction in risk appetite changes the usual transmission of fluctuations in U.S. bond yields to the U.S. dollar, and the impact of changes in carry trade sentiment on major currency pairs.
Hot inflation in the United States has strengthened expectations of the Federal Reserve's interest rate hikes. Interest rate differentials have directly suppressed the euro and pushed up the dollar. The exchange rate has quickly reflected changes in interest rate expectations. For gold, a stronger U.S. dollar may pose short-term pressure, and we need to pay attention to whether the Fed's policy signals and inflation data continue this logic.
Falling Asian stocks weighed on the crypto market, with altcoins leading the decline, with Bitcoin down around 0.5% since midnight UTC to around $81,200. South Korea's Kospi plunged 8%, triggering a circuit breaker, Nasdaq 100 futures fell about 1%, and the probability of the Federal Reserve raising interest rates in October dropped from nearly 47% to about 26%. Derivatives data shows that nearly US$1 billion in futures positions have been liquidated, and the liquidation of long Ethereum positions has reached US$200 million, with new incoming funds tending to go short.
The plunge in Asian stock markets and the pressure on the crypto market show a significant increase in risk aversion, which usually increases the market attention of traditional safe-haven assets such as gold and safe-haven currencies such as the Japanese yen. The collapse of South Korea's Kospi triggered a circuit breaker and risk appetite shrank rapidly. The foreign exchange market needs to pay attention to changes in capital flows between risky currencies and safe-haven currencies.
Risk assets such as Bitcoin generally fell, copper futures fell nearly 1%, the 10-year U.S. Treasury yield fell 8 basis points to 5.08%, and gold rose 1%. Markets interpreted this combination as a contraction in risk appetite, driven in part by concerns about stagflation. CME futures pricing has dropped the probability of the Federal Reserve raising interest rates this month to 29%, with traders focusing on Thursday's PPI data and whether BTC can hold on to $78,000.
The combination of the general decline in risk assets and the rise in gold and U.S. Treasuries shows that the market is trading on stagflation concerns rather than a simple recovery in risk appetite. The probability of the Federal Reserve raising interest rates this month has dropped to 29%, weakening the short-term support of the US dollar, and gold's safe haven and anti-stagflation properties have gained a relative advantage. Whether subsequent PPI data and key risk asset levels can stabilize will be the key to judging the continuity of this risk aversion logic.
The author believes that US inflation concerns are not over yet, and intraday PPI and retail sales may bring new risks to the market. Previously, higher-than-expected CPI has put pressure on the stock market. If PPI is hot and retail sales are stronger than expected, it may push up U.S. bond yields and the dollar, and the stock market will continue to weaken. However, the probability of the Federal Reserve raising interest rates in October is about 29%, which has not increased significantly from about 22%. A rate hike in December is almost certain.
Concerns about U.S. inflation have not dissipated. If PPI and retail sales are hot during the day, it may intensify the upward risk of U.S. bond yields and the U.S. dollar, thereby affecting the valuation environment of gold and non-U.S. currencies. Traders need to pay attention to the degree to which the data consolidates expectations for a rate hike by the Federal Reserve in December, as well as the marginal change in the probability of a rate hike in October.
World gold prices closed up US$61 to US$4,193 per ounce on October 9, rising to a weekly high for the second consecutive day. Dip buying and falling U.S. bond yields have fueled the rebound; analysts believe that if inflation data is higher next week and the Federal Reserve raises interest rates more, gold prices may retest support at $4,000.
The continuous rebound in gold prices was mainly driven by bargain hunting and the fall in U.S. bond yields, with market sentiment recovering in the short term. However, traders need to pay attention to changes in inflation data and Fed policy expectations next week. If the data strengthens tightening expectations, it may suppress gold prices again and drive fluctuations in the dollar and yields.
The Federal Reserve's latest consumer finance survey shows that the proportion of U.S. households with delinquent loans rose from about 12% to nearly 20% by the end of 2025, the highest level since 2010. The proportion of households overdue for more than two months rose from 5% to over 8%, and the proportion of households with a debt-to-income ratio of more than 40% rose from 6.5% to 8.6%, the highest level since 2013. During the same period, the median net worth of households in the top income group rose 31%, while the median net worth of households in the bottom quartile fell 6%.
A Federal Reserve survey shows that the U.S. household debt delinquency rate has risen to the highest level since 2010, and the net worth of low-income groups has declined, reflecting the increasing debt repayment pressure and balance sheet differentiation of the household sector. This requires the market to more carefully assess the sustainability of U.S. consumption resilience and pay attention to its potential impact on the Fed's policy path and the U.S. dollar. Gold may gain more attention as a safe-haven asset, but subsequent consumption and credit data still need to be verified.
The New York Fed reported that as of February, tariffs had made 67 categories of everyday goods more expensive by 2.9 percentage points, and without tariffs these goods would have fallen by nearly 1%. The study also found that for every 1 percentage point increase in average tariffs, the price of consumer goods will be approximately 0.25 percentage points higher one year later, and approximately 26% of the tariff increases will ultimately be translated into price increases.
Quantitative data from the New York Fed provide a clear reference for the transmission of tariffs to consumer goods prices, suggesting that the impact of trade policy on inflation stickiness is emerging. Traders need to pay attention to the constraints this mechanism imposes on the path of monetary policy, as well as changes in the pricing environment for gold and the U.S. dollar amid the intertwining of inflation expectations and policy uncertainty.