The gold market is witnessing a “fire-red” week as gold prices drop by 5–6%, marking the steepest decline since 2020.
Spot gold is currently around $4,113/oz, losing more than 3.3% just this week, due to profit-taking by investors, a stronger USD, and rising bond yields.
Attention now shifts to the CPI report and Fed policy, factors that could shake both gold and crypto.
📉 How is crypto reacting?
Bitcoin is hovering around $110,600, but the correlation between gold and BTC has decreased to 0.1 in October - a rarely seen low.
A portion of capital withdrawn from gold may flow into Bitcoin, and just a 3–5% shift in gold capital could see the crypto market witness a significant rebound.
Conversely, if gold recovers strongly, 'safe-haven' capital may withdraw from risk assets.
🔍 What should investors pay attention to?
Gold drops → likelihood of capital seeking crypto.
CPI, Fed interest rates, and bond yields are the triggers for upcoming volatility.
Prepare the scenario: gold rebounds = crypto adjusts, gold weak = crypto has the chance to break out.
Gold is 'cooling down', while crypto is 'waiting for the fire'.
The question is not how much gold will drop - but where the capital will flow next.
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