Gold Closes in On All-Time High as Crypto, Stocks Tumble

Group 1: Gold Market Insights - Gold prices are up nearly 1% and are trading at $4,262.35, just 2.95% below the record high of $4,381.44, indicating strong demand for the precious metal [1] - The rise in gold prices is attributed to growing caution among investors and rising expectations for a potential rate cut by the Federal Reserve in December [3] - Speculation that the next Federal Reserve chair may adopt a more dovish stance is further fueling demand for gold [3] Group 2: Cryptocurrency Market Dynamics - Bitcoin's recent crash has led to a decline in the total cryptocurrency market cap by over 6%, dropping from $3.191 trillion to $3.016 trillion, with Bitcoin trading just under $86,000 [2] - The S&P 500 index is down 0.5% in premarket trading, reflecting bearish sentiment among U.S. equity investors [2] Group 3: Federal Reserve and Economic Indicators - The odds of a quarter-point rate hike in December are around 88%, but investor caution persists due to data gaps following the government shutdown [4] - Prediction markets assign an 86% chance of a 25 basis point rate cut in December, while the likelihood of Jerome Powell exiting the Fed Chair by year-end is only 9% [4] - Analysts suggest that upcoming economic reports, such as the ADP employment report and core PCE data, will provide clearer signals regarding the Fed's next steps [5]