The latest U.S. inflation data has triggered a violent repricing across macro markets, with gold and silver bearing the immediate brunt. Gold dropped another 1.4% to around $3,932 per ounce, its lowest since November 4, while silver fell roughly 1.3% toward $51. According to Bull Theory, the combined market value of gold and silver has fallen by an estimated $1.1 trillion over the past 24 hours, though this reflects a theoretical markdown of above-ground supply rather than a direct cash exodus.
The catalyst was October’s CPI report, which rose 0.4% month over month, above the 0.3% forecast, with core inflation also running hot. Traders now price an 89% probability of a 25-basis-point Federal Reserve rate hike in December and an 11% chance of a larger 50-basis-point move. Deutsche Bank added another 25-basis-point hike in January 2027 to its outlook, citing persistent inflation pressure. The U.S. dollar has surged to a 19-month high, creating a double headwind for non-yielding assets: higher Treasury yields raise the opportunity cost of holding them, while a stronger dollar makes them more expensive for international buyers.
BlackRock pointed to higher real yields, dollar strength, and profit-taking as the central forces behind the correction. Gold later broke below $3,900, with the next macro test coming from U.S. producer inflation data on Friday. For crypto markets, the same tightening expectations and dollar strength could weigh on risk assets, with Bitcoin particularly sensitive to shifts in liquidity and real yields.
