Dollar Dives, Gold & Silver Surge as Fed Rate Hike Bets Collapse
The US dollar just hit a two-week low, sending gold and silver prices on a tear. Investors are ditching rate hike bets after a brutal jobs report shattered expectations. This macro shift is a clear signal for risk assets.
The dollar index is bleeding out, hitting a two-week low as traders dump rate hike expectations. Gold and silver are riding the wave, catching a bid as the opportunity cost of holding non-yielding assets plummets. This isn't just a metals play; it's a macro signal flashing green for risk-on assets. The June jobs report was a gut punch, adding a mere 57,000 jobs – half the forecast – and revising prior months lower. The market's repricing is brutal, slashing July Fed hike odds to just 21.9% and pushing September hike probabilities down. Keep an eye on this week's Fed minutes and the upcoming inflation print; they'll either confirm this dovish pivot or send markets scrambling again.