Gold Extends Losses as Dollar Strengthens

Spot gold declined 0.3% on Thursday to $5,063.11 per ounce, giving back part of the more than 1% gain recorded in the previous session. U.S. gold futures for April delivery followed a similar pattern, slipping 0.3% to $5,083.90 per ounce.

The move coincided with a rise in the U.S. dollar index. A stronger dollar typically weighs on commodities priced in dollars, as it makes them more expensive for holders of other currencies, thereby limiting demand.

Labor Market Details and Revisions

January employment growth in the United States exceeded expectations, while the unemployment rate eased to 4.3%. However, downward revisions to prior data revealed that total job creation for 2025 amounted to 181,000 positions, significantly below the previously estimated 584,000. This suggests that, despite the headline strength, underlying labor market momentum may be softer than initially perceived.

The data has slightly reduced the likelihood of an imminent rate cut by the Federal Reserve. Market consensus points to no policy change through May, with a potential rate reduction beginning in June.

Fiscal Outlook and Policy Uncertainty

Adding to the macroeconomic backdrop, the Congressional Budget Office projects the U.S. budget deficit to reach $1.853 trillion in fiscal year 2026. In a low-growth environment, widening fiscal imbalances may complicate the broader economic outlook.

Investors are also monitoring potential leadership changes at the Fed, with some assessments suggesting that a new chair could pursue a more accommodative monetary stance.

Silver and Other Precious Metals

Silver mirrored gold’s decline. Spot silver traded around $83.29, posting a daily loss of 1.07% after a nearly 4% surge in the previous session. The pullback underscores ongoing volatility across the precious metals complex.

Platinum fell 0.8% to $2,113.79, while palladium edged up 0.9% to $1,715.30. Markets now await weekly jobless claims and the forthcoming inflation report, both of which are expected to play a decisive role in shaping expectations for the Fed’s next policy steps.

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Powell’s Remarks Ease Market Concerns

In his recent address, Fed Chair Jerome Powell acknowledged the growing weakness in the labor market and the increasing downside risks to employment. He emphasized that the central bank is now moving toward a more “neutral” policy stance. “There is no risk-free path as we balance our employment and inflation goals,” Powell said, signaling that a period of policy easing may be approaching.

These dovish remarks strengthened investor expectations for rate cuts. According to CME futures data, there is a 95.7% probability of a 25-basis-point cut at the Fed’s October 29 meeting, while the chance of another similar cut in December has climbed to 94.8%.

End of Tightening Could Benefit Bitcoin

Powell also hinted that the Fed’s quantitative tightening (QT) phase may soon come to an end — a message markets interpreted as another bullish sign. JPMorgan Chief Economist Michael Feroli noted, “The Fed is almost certain to cut rates at its next meeting.”

Bitcoin analyst Joe Consorti echoed this sentiment, stating, “With 125 bps of cuts already priced in and QT nearing its end, BTC has been rangebound for months — you can guess what happens next.” According to Consorti, halting QT and lowering interest rates below 3% could serve as a powerful tailwind for Bitcoin in the months ahead.

Crypto Market Reaction Remains Muted

Despite the Fed’s dovish tone, the crypto market has remained cautious following the weekend’s major liquidation event. Total market capitalization briefly dipped below $4 trillion, with Bitcoin dropping under $110,500 before rebounding to $112,500 during the Asian session.

Ethereum also slipped below the $4,000 psychological threshold but recovered to around $4,120 at the time of writing. Altcoins, meanwhile, are showing only mild recoveries, keeping the overall sentiment restrained.

As expectations for monetary easing continue to rise, analysts believe the fourth quarter could mark the start of a fresh rally across the crypto landscape — led once again by Bitcoin.

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The post Could the Fed Dovish Shift Spark a Q4 Crypto Rally? appeared first on Coin Engineer.

Monday – Labor Day 

• U.S. stock markets will be closed. Low liquidity may increase sudden price swings in crypto markets. 
• Tether ends support for Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand networks, marking a significant change in the stablecoin ecosystem. 
• Conflux (CFX) will implement its hard fork update. 
• Starknet (STRK) will release its mainnet upgrade. 

Tuesday 

• Eurozone Annual Inflation Rate (CPI) will be released. Inflation data may impact ECB policy and demand for crypto via the Euro. 
• U.S. ISM Manufacturing Data will be published. Lower-than-expected results could boost global risk appetite and crypto inflows. 

Wednesday 

• Turkey Annual Inflation Rate CPI will be announced. Movements in TRY may affect USDT/TRY and local crypto pricing. 
• U.S. JOLTS Job Openings and Factory Orders. Slower employment growth may affect Fed policy expectations, creating volatility for Bitcoin. 
• Fed Beige Book Report will be released. Signals on economic outlook are critical for risk assets. 

Thursday 

• U.S. ADP Nonfarm Employment Data release. Weak jobs growth may strengthen expectations of Fed rate cuts and positively impact crypto. 
• Weekly U.S. Unemployment Claims will be monitored. 
• Fed officials John Williams and Austan Goolsbee will speak. 

Friday 

• U.S. Nonfarm Payroll report. This could be the most critical data for crypto markets this week. Weak numbers may increase inflows into risk assets. 
• U.S. Unemployment Rate and Hourly Earnings will directly impact Fed rate expectations. 

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The post Crypto Markets This Week: Key Data & Updates September appeared first on Coin Engineer.

Fed Chair Powell’s Remarks on Inflation and Monetary Policy

Federal Reserve Chair Jerome Powell addressed the House Financial Services Committee, providing key insights into inflation and monetary policy. Powell acknowledged that while inflation has significantly declined over the past two years, it remains elevated compared to the Fed’s 2% target.

Despite progress toward the inflation goal, Powell emphasized that risks persist, and the Fed remains cautious in its approach. He reiterated his commitment to a data-driven strategy, stating that while monetary policy rules are important, they serve as a starting point rather than a final decision-making framework.

Regarding stablecoins, Powell reaffirmed his previous stance, highlighting the necessity of a strong regulatory framework and stressing that the Federal Reserve continues to closely monitor developments in the digital asset space.

Powell’s remarks suggest that the Fed is likely to maintain its current policy stance and avoid premature rate cuts, a key consideration for investors closely watching interest rate expectations.

Fed Chair Powell’s Remarks: Employment, Inflation, and Treasury Liquidity

Federal Reserve Chair Jerome Powell addressed key economic topics, including employment, inflation, and Treasury liquidity. Powell stated that the Fed’s employment mandate could lead to higher employment levels.

He also reflected on the Fed’s 2021 stance, when inflation was considered transitory, emphasizing the significance of past decisions in shaping the current economic outlook.

Additionally, Powell expressed concerns about Treasury market liquidity, highlighting the need for close monitoring to ensure financial system stability.

Fed Chairman Powell’s Key Remarks: Balance Sheet Reduction and Crypto Policy

U.S. Federal Reserve Chairman Jerome Powell emphasized that more progress is needed in balance sheet reduction. Powell also mentioned that changing the interest rates in the tariffs is possible and noted that while they are approaching their inflation target, they have not yet reached it. He pointed out that today’s inflation data confirms this, and therefore, the monetary policy will remain tight for now.

Additionally, Powell highlighted that many activities related to cryptocurrency can be effectively conducted through banks. These remarks clarify the Fed’s stance on cryptocurrencies and financial markets.

Powell: “PPI Data Will Be Monitored for Its Impact on PCE”

Federal Reserve Chair Jerome Powell stated that tomorrow’s Producer Price Index (PPI) data will be closely monitored to assess its impact on the Personal Consumption Expenditures (PCE) inflation measure. Powell emphasized the need for caution regarding today’s Consumer Price Index (CPI) data, reiterating that the Fed primarily targets the PCE inflation indicator, which he considers a more accurate measure.

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