As the US inflation data prompted investors to lower their expectations for a significant rate cut by the Federal Reserve next week, the US dollar and US Treasury yields strengthened, causing gold prices to fall. The US CPI in August only rose slightly, but core inflation showed some stickiness, which could prevent the Fed from cutting rates by 50 basis points next week. Bob Haberkorn, Senior Market Strategist at RJO Futures, said, 'Inflation still exists. Consumers can still feel it. If they only cut rates by half (25 basis points), it means they have given up. Cutting rates by 25 basis points is almost what they have to do right now.' Tai Wong, an independent metal trader in New York, said, 'The rebound in core CPI more or less solidified the 25 basis point rate cut next week... It may take some time for gold prices to reach new all-time highs again.' The market focus will now shift to the US PPI data and initial jobless claims to be announced on Thursday.