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Gold fell for the fourth consecutive trading day on Wednesday, reaching a new two-month low, dragged down by the strengthening of the US dollar and the rise in U.S. bond yields. According to the data released during the day, the increase in consumer prices in the United States in October was in line with expectations, and the market increased its bet on a possible 25 basis point cut in interest rates in December. According to the CME FedWatch tool, traders set the probability of the Federal Reserve’s interest rate cut in December at 82%, which is about 58% higher than before the data was released. However, since the middle of this year, inflation has slowed down, which may lead to a decrease in the number of interest rate cuts by the Federal Reserve next year. Moreover, if inflation rises after the expected new tariffs, Trump’s presidency may cause the Federal Reserve to suspend the easing cycle. After the key U.S. October Consumer Price Index (CPI) report, the next focus will shift to Federal Reserve Chairman Powell is scheduled to deliver a speech on Thursday. The U.S. Producer Price Index (PPI) data will also be released during the day, and retail sales data will be released by Friday.

In terms of the technical trend, the gold price has clearly missed the 2700 mark and the upward trend line this week, which is stimulating another wave of adjustment trend. A set of large upward trend lines extending since February this year has been at $2,608 so far, and this area has also been significantly lost, and it is expected that the trend of the decline will be more fierce. Subsequently, the extended decline can be tested to 2560 and the 100-day average of 2542, and then run to the 2500 level to the September low of $2,471.80. The resistance level looks back at $2,585 and $2,620, and the larger resistance is expected to be the 50-day average of $2,650 to $2,675.