Bitcoin and Gold Tank After August Core CPI Surprises

US inflation data for August delivered a tricky mix for investors, showing that underlying price pressures are still sticking around. While headline consumer prices matched what the market expected, the core consumer price index rose 0.3 percent month over month, beating the 0.2 percent forecast.

Both Bitcoin and gold prices crashed immediately after the report hit the market. The hotter monthly core reading adds fresh uncertainty for traders who are closely watching the Federal Reserve to see what policymakers will do next with interest rates.

Annual inflation climbed 3.4 percent year over year, which was right in line with expectations, but the stubborn monthly core numbers keep pressure on the central bank. Traders should keep a close eye on upcoming economic speeches and market reaction as everyone tries to guess the next policy step.