Gold, silver, bitcoin crash as safe-haven appeal fades following Fed decision

Group 1 - Gold prices fell sharply, dropping as much as 6% on Thursday, indicating a departure from its traditional role as a safe-haven asset amid escalating Middle East conflicts [1][9] - Gold futures reached $4,500 per ounce, while silver and copper saw declines of 13% and 5%, respectively, with bitcoin also falling below $70,000 [2] - The rise in oil prices has increased inflation expectations, leading to concerns that central banks, including the Federal Reserve, may maintain higher interest rates for an extended period, which negatively impacts non-yielding assets like gold [3] Group 2 - The strengthening of the US dollar by 3% over the past month has added further pressure on dollar-denominated assets, contributing to a 13% decline in gold prices since the onset of the Middle East conflict on February 28 [3] - Technical analysis indicates that gold's failure to rise despite geopolitical tensions is due to macroeconomic and technical headwinds overshadowing its safe-haven appeal [4] - Year-to-date, gold is up approximately 4%, following a significant 65% increase last year driven by central bank purchases and strong demand from Asia [5] Group 3 - Silver has experienced further declines since a sell-off in late January, trading near a December low of $68 per ounce, with concerns about higher energy costs impacting global activity [6] - Digital assets, including bitcoin and ether, have also faced declines, with bitcoin falling 3% after reaching a February high earlier in the week [7]