#GoldTechnical analysis#24K99 News: On Wednesday (November 13), due to the expected increase in the usa's CPI for October, the usd strengthened and usa treasury yields rose, resulting in a sell-off of gold prices, which fell for the fourth consecutive trade day.

Spot gold closed down by $25.39 on Wednesday, a decline of 0.98%, priced at $2572.64 per ounce.

FXStreet analyst Christian Borjon Valencia pointed out that due to the strengthening of the usd after the release of the usa's CPI, gold prices declined. Upcoming economic events, including a speech by Federal Reserve Chairman Powell and usa retail sales, will further affect the trend of gold.

Valencia wrote that on Wednesday, following the release of the expected usa October inflation report, gold prices fell sharply. The usa treasury yields surged, and the usd reached a new high since the beginning of the year, putting pressure on gold prices. Market participants remain aware that if low tax rates and new tariffs lead to rising inflation, Trump's presidency may weaken the Federal Reserve's easing policy.

Buoyed by market expectations that the Federal Reserve's dovish stance will weaken, the usd index (DXY), which tracks the usd against a basket of currencies, reached a year-to-date high of 106.52, surpassing the April 16 high of 106.51.

usa treasury yields continued to rise, with the benchmark 10-year treasury yield increasing by 2.5 basis points to 4.453%. Additionally, the usa's real yield (negatively correlated with gold prices) rose by one basis point to 2.089%.

Jim Wyckoff, a senior market analyst at Kitco Metals, reported that the next near-term downward price target for gold bears is to push the gold price below $2500/ounce on solid technicals.Resistance。

Progress in reducing inflation in the usa has become slow.

The usa Department of Labor reported that since mid-year, progress in reducing inflation has become slow, which may lead the Federal Reserve to reduce the number of interest rate cuts next year.

In October, the consumer price index (CPI) in the usa rose by 2.6% year-on-year, an increase higher than last month's 2.4%; the October CPI increased by 0.2% month-on-month, both of which were in line with expectations.

Core CPI also met expectations, increasing by 3.3% year-on-year and 0.3% month-on-month. Core CPI data better reflects the underlying trends of inflation.

After the October CPI data was released, Minneapolis Federal Reserve President Kashkari stated: "The overall data in the CPI report confirms our current trend; there are six weeks until the Federal Reserve's next meeting, during which more data will be released. We are not ready to announce that inflation will remain above the 2% target."

Dallas Fed President Logan stated that while further rate cuts may be needed, policymakers should proceed with caution given the uncertainty of current mmf policy restrictions. She said, "I think we should be cautious at this point."

Kansas Fed President Schmidt warned on Wednesday about the space for further rate cuts. He stated at an energy conference, "While it is now time to start reducing mmf policy restrictions, how much further rates will fall or where they might ultimately stabilize remains to be seen."

Powell's speech is coming.

Valencia mentioned that looking ahead to the remainder of the week, traders are closely watching Fed Chairman Powell's remarks. The USA Producer Price Index (PPI) and initial jobless claims data will be released on Thursday. On Friday, retail sales data will update the status of American consumers.

At 04:00 Beijing time on Friday, Fed Chairman Jerome Powell will be invited to participate in a dialogue titled "Global Perspective."

The Fed announced last Thursday that it would lower the benchmark interest rate by 25 basis points to 4.50%-4.75%, marking the second consecutive rate cut in line with market expectations. Powell did not provide any strong hints that could suggest a possible pause in rate cuts at that time.

At the press conference, Fed Chairman Powell avoided giving specific guidance on the future rate trajectory, leaving flexibility for the December meeting and beyond. He emphasized that due to a strong economy, the Fed can take its time in lowering rates. He acknowledged that even after the rate cut on Thursday, the policy remains restrictive as officials aim to bring rates down to neutral levels.

Regarding the speed of rate cuts, Powell stated that if the labor market weakens or slows down when approaching neutrality, the Fed might accelerate the pace of rate cuts. However, he clarified that no final decision has been made yet.

Powell also stated that in the short term, the outcome of the presidential election would not directly affect mmf policy.

FXStreet analyst Eren Sengezer pointed out that if Federal Reserve officials take a more cautious stance on further policy easing due to the potential inflation impact of Trump's policies, the yields on USA government bonds may begin to rise, putting pressure on gold.

How to trade gold?

FXStreet analyst Christian Borjon Valencia noted that after gold prices fell below the October 10 low of $2,603 per ounce, they have turned from neutral to put.Simple Moving AverageThis opens the door for gold prices to challenge the 100-day (SMA) level of $2,540 per ounce. If further weakness occurs, the next resistance for gold prices will be $2,500 per ounce.

(Spot gold daily chart source: FXStreet)

On the other hand, Valencia added that if gold prices regain $2,600 per ounce, buyers will focus on the 50-day moving average of $2,647 per ounce, followed by $2,650 per ounce. Once these levels are broken, the next resistance will be the November 7 high of $2,710 per ounce.

Valencia stated thatRelative Strength Index(RSIThe momentum has shifted to put, indicating that gold prices may continue to decline.