The latest inflation report has clearly shaken things up in this market cycle. 

To put it in context, February’s PPI, released on the 18th of March, came in hotter than expected, signaling that U.S. inflation is still sticky. The reaction was almost instant. Gold, for instance, dropped 3.74%, slicing through the $5k support level, a move that caught many traders off guard.

The logic here is straightforward: Historically, during times of geopolitical instability, investors flocked to gold as a hedge against inflation. But what’s interesting now is that this pattern seems to be shifting. So far, this move hasn’t spilled over into crypto, though that doesn’t mean a crash is off the table.

To see why,…