A key US inflation indicator was higher than expected, strengthening the market's bet on the Fed's interest rate hike next month, and gold extended its decline. At one point, the price of gold fell 2.4%, falling below $4,050 an ounce. After the consumer price index was announced in October, US Treasury yields and a dollar index both rose. The data showed that the price increase accelerated, exceeding the expectations of economists surveyed by Bloomberg. The Fed's interest rate outlook is a key factor affecting the trend of gold. Since gold itself does not pay interest, rising borrowing costs often put pressure on the price of gold. Currently, the market's expectations for a 25 basis point rate hike in December have exceeded full pricing, and Federal Reserve Governor Christopher Waller raised the possibility of raising interest rates by 50 basis points earlier on Tuesday. Daniel Ghali, head of metals research at Deutsche Bank, wrote in a report on Tuesday that Waller's remarks “made market mentality begin to accept” the possibility of raising interest rates by 50 basis points.

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