Gold Steady, Bitcoin Slides as Dollar Strengthens Ahead of US Jobs Data
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Gold held its ground on Wednesday while Bitcoin fell sharply, as the U.S. dollar continued to strengthen ahead of a key U.S. jobs report due Friday that could shape the Federal Reserve’s next interest rate move.
Spot gold hovered around $2,317 per ounce, showing minimal movement after a volatile June. Investors appeared cautious, balancing between inflation concerns and safe-haven demand. U.S. gold futures settled slightly higher at $2,321, supported by modest dip-buying from institutional players.
Meanwhile, Bitcoin slid over 5%, trading near $56,200, extending a two-week losing streak. Analysts attributed the drop to profit-taking, rising Treasury yields, and a broad risk-off sentiment across crypto markets.
“The strong dollar and cautious Fed outlook are dragging on crypto, which thrives on lower rates and liquidity,” said Lina Navarro, crypto strategist at Bluemark Holdings. “Gold, by contrast, is holding its defensive position.”
The U.S. Dollar Index (DXY) climbed to 106.7, its highest level in nearly three months, fueled by expectations that the Fed will delay rate cuts longer than previously anticipated. Fed Chair Jerome Powell reiterated this week that inflation “remains too high,” reinforcing the central bank’s patient stance.
Higher yields made non-yielding assets like gold less attractive, but global uncertainty—especially from geopolitical tensions and slowing global growth—helped maintain demand for the yellow metal.
“There’s a push and pull in gold right now,” explained Abigail Krugman, metals analyst at LME Watch. “Real rates are rising, which is bearish, but so is geopolitical risk and central bank buying, which provide a floor.”
Elsewhere, other precious metals moved mixed. Silver gained 0.4% to $29.55 per ounce, while platinum dipped slightly to $1,015. Palladium rose 1.1%, aided by strong demand in the auto sector.
In the digital asset space, major altcoins like Ethereum (ETH) and Solana (SOL) also fell, declining 3.8% and 6.2% respectively. Total crypto market capitalization dropped below $2.1 trillion.
Regulatory uncertainty in the U.S. and Europe continued to weigh on sentiment. The SEC announced further scrutiny into DeFi platforms and token staking products, signaling more legal headwinds for the sector.
Looking ahead, investors are focused on the upcoming U.S. non-farm payrolls report due Friday, which could influence both Fed policy and asset prices. A stronger-than-expected report may fuel further dollar strength and pressure on Bitcoin, while weaker jobs data could revive hopes for a September rate cut — potentially bullish for gold and risk assets alike.
Until then, markets remain in wait-and-see mode, with volatility expected to remain elevated heading into Q3.
