Diplomatic contacts between the US and Iran sent a positive signal. Trump said it is unlikely that another attack on Iran will be launched, and Rubio also said that there is currently no need to carry out large-scale military operations. The easing of conflict is expected to limit the dollar's further strengthening. After falling on the previous trading day, gold once rebounded above $4,050 per ounce. However, progress in negotiations has yet to translate into a full restoration of energy supply, and improvements in inflation and policy expectations are still limited. US CPI rose 0.4% month-on-month in October, higher than expected 0.3%; core CPI rose 0.3% month-on-month, higher than expected 0.2%, maintaining this growth rate for three consecutive months. Overall price increases have slowed, but core inflation has not cooled down significantly. Waller supported the December rate hike and proposed the possibility of raising interest rates by 50 basis points; Paulson emphasized maintaining restrictive policies, and Logan also suggested that interest rate hikes might be needed. Policy discussions have further turned to a tightening pace. The US dollar remains relatively strong, and the rebound of gold is still constrained by holding costs. The key to whether falling energy prices can support gold is whether it can drive interest rate expectations down. If core inflation continues to be strong, there is still a reason for the Federal Reserve to maintain austerity, and it will be difficult to fully realize the benefits brought about by falling oil prices. The diversification of central bank purchases and reserves continues to support medium- to long-term allocation requirements, but short-term prices still depend on the US dollar, real interest rates, and investment capital flows.

Diplomatic contacts between the US and Iran sent a positive signal. Trump said it is unlikely that another attack on Iran will be launched, and Rubio also said that there is currently no need to carry out large-scale military operations. The easing of conflict is expected to limit the dollar's further strengthening. After falling on the previous trading day, gold once rebounded above $4,050 per ounce. However, progress in negotiations has yet to translate into a full restoration of energy supply, and improvements in inflation and policy expectations are still limited. US CPI rose 0.4% month-on-month in October, higher than expected 0.3%; core CPI rose 0.3% month-on-month, higher than expected 0.2%, maintaining this growth rate for three consecutive months. Overall price increases have slowed, but core inflation has not cooled down significantly. Waller supported the December rate hike and proposed the possibility of raising interest rates by 50 basis points; Paulson emphasized maintaining restrictive policies, and Logan also suggested that interest rate hikes might be needed. Policy discussions have further turned to a tightening pace. The US dollar remains relatively strong, and the rebound of gold is still constrained by holding costs. The key to whether falling energy prices can support gold is whether it can drive interest rate expectations down. If core inflation continues to be strong, there is still a reason for the Federal Reserve to maintain austerity, and it will be difficult to fully realize the benefits brought about by falling oil prices. The diversification of central bank purchases and reserves continues to support medium- to long-term allocation requirements, but short-term prices still depend on the US dollar, real interest rates, and investment capital flows.