Rising trend like a rainbow! The US Dollar Index approaches a two-year high, while gold falls to its lowest level in eight weeks.

Although the US inflation data supported the possibility of another rate cut by the Federal Reserve next month, the price of gold continued to fall for four consecutive days due to the significant increase in the value of the US dollar. As of the time of writing, the spot price of gold remained relatively unchanged at $2574.55 per ounce. The US dollar spot index remained stable after reaching its highest level since 2022 on Wednesday. Silver saw a slight increase, palladium remained steady, and platinum fell. After falling by 1% in the previous trading day, gold prices stabilized on Thursday after hitting an eight-week low. Expectations of President-elect Trump's victory boosting economic growth and corporate profits pushed a measure of the US dollar to a two-year high. The stronger dollar made bulk commodities priced in dollars more expensive for most buyers. The overall US October CPI declined as expected, but the 3-month core CPI increased. Overall, these data support the Fed's possible rate cut in mid-December, with derivatives traders estimating the likelihood to be over 80%. Lower borrowing costs often benefit gold, which does not pay interest. Gold prices have dropped over 7% from their historical high on October 31st, with the decline accelerating after Trump won the presidential election. Supported by the Fed's loose monetary policy, central bank purchases, and increasing geopolitical and economic risks driving safe-haven demand, gold prices have still risen by about 25% this year.