US Inflation Exceeds Forecasts, Shaking Gold and Crypto Markets
US consumer prices rose more than expected in October, fueling inflation concerns and triggering sharp selling pressure in gold and cryptocurrency markets.
This story was prepared with the help of artificial intelligence, compiled from several sources, and read and approved by our editor.
The US Bureau of Labor Statistics reported on Tuesday that the Consumer Price Index (CPI) for October increased by 0.4% month-over-month, surpassing market expectations of a 0.3% rise. Core CPI, which excludes volatile food and energy prices, also rose by 0.3%, exceeding the anticipated 0.2% gain.
The stronger-than-expected inflation data intensified concerns that the Federal Reserve (Fed) might pursue further interest rate hikes. Gold, a non-yielding asset, experienced a significant decline following the news. According to Habertürk, the price of an ounce of gold fell by 2.1% to $4,053, while Ekonomim reported a drop exceeding 2.60%, reaching as low as $4,039.
The cryptocurrency market also reacted to the inflation figures. Ekonomim stated that Bitcoin's price dropped to $73,587, marking its lowest level in 11 weeks. This movement indicated a broader reduction in risk appetite across financial markets.
Federal Reserve Governor Christopher Waller had indicated prior to the inflation release that a robust inflation report could lead him to advocate for a larger interest rate increase in December. Following the data, market participants are now largely pricing in a quarter-percentage-point hike at the Fed's next meeting, with the probability of a half-percentage-point increase also rising. The annual inflation rate for October was not released due to a lack of comparable data from October 2025, which was impacted by a government shutdown.