The stronger the U.S. economy, the more vulnerable is gold? What signal is a 77.7% rate hike probability sending?

Gold investors may be feeling a little conflicted lately: If the U.S. economy is performing well, why is that making the gold market nervous?
The reason is interest rates.
The U.S. added 165,000 nonfarm jobs in October, far exceeding market expectations, while the unemployment rate fell to 4.1% and wage growth also came in above expectations. A strong labor market has led investors to raise their expectations for a Fed rate hike.
The probability of a 25-basis-point rate hike in December has risen to 77.7%.
Generally speaking, higher interest rates may boost the U.S. dollar and bond yields, while gold itself pays no interest, so it may face pressure from a rising opportunity cost.
But gold doesn't move solely in step with the dollar and interest rates.
If inflation heats up again, international tensions escalate, or clear safe-haven demand emerges, gold may still attract investment.
That's what makes the gold market so interesting: Bad news doesn't necessarily mean an immediate drop, and good news doesn't necessarily mean an immediate rise.
When investing in gold, don't focus only on the 77.7% figure; pay closer attention to Fed policy, the dollar's movements, real interest rates, and global risks.
The market most often punishes those who draw conclusions based on just one indicator.#AI科技股大跌加密市场承压