Spot gold fell during Friday's Asian trading session, hitting a more than one-year low of $3,880. Persistent concerns about US inflation and market pricing in persistently high interest rates were the core drivers of the decline in precious metals. The market will focus on the upcoming release of the US October PPI (Producer Price Index) later in the day, seeking further clues about inflation and the Federal Reserve's interest rate decisions. Geopolitically, Trump publicly stated on Thursday that the US would no longer seek a deal with Iran, ending market optimism regarding diplomatic mediation in the conflict. International crude oil prices rebounded in response, reigniting market concerns about inflation. David Meger, Director of Metals Trading at High Ridge Futures, stated that persistently high energy prices will force the Federal Reserve to maintain a hawkish stance; while a high-interest-rate environment will raise the holding cost of non-interest-bearing gold, creating a sustained headwind for gold prices. Previously released US CPI inflation data exceeded market expectations, further strengthening expectations of a December rate hike. Federal Reserve Governor Waller explicitly stated that if core inflation remains high, a 50 basis point rate hike should be included in the policy options. CME Group tools show that the probability of a 50 basis point rate hike in December has risen to 14.5%, while before Tuesday's inflation data release, this probability was almost zero. Deutsche Bank analysis points out that while the Atlantic credit markets remained relatively stable, risk aversion in assets intensified. Gold recorded its best weekly performance since August this week, before falling back on Friday; the sell-off in the AI sector drove down global sovereign bond yields. However, US Treasury yields diverged, with the 10-year Treasury yield rising slightly to 4.87%, while Brent crude oil also fell slightly. San Francisco Fed President Daly's speech was strongly hawkish, earning her an FXS speech tracking score of 8.3, significantly higher than the historical average of 6.5. She repeatedly emphasized that inflation is sticky and favored further policy tightening, believing that AI would bring potential future price pressures, but was not the main cause of current inflation; service sector inflation was stubborn, and the resilience of the economy and labor market still required a restrained policy stance. The FXS Fed Sentiment Index rose 1.01 points to 147.55, clearly in hawkish territory, supporting the dollar and indirectly suppressing gold. On the daily chart, spot gold maintains a short-term bearish tone, with prices trading below the 100-day simple moving average and the 20-day Bollinger Band middle line. The current price is hovering above the lower Bollinger Band support, with downward pressure dominating. The 14-period RSI reading is 37.64, below the 50 neutral line, indicating weak buying confidence, but it hasn't yet entered fully oversold territory, so further downward movement cannot be ruled out. The first resistance level is the middle Bollinger Band at 4038, followed by the 100-day moving average at 4200, with the upper Bollinger Band at 4205 providing even stronger resistance. Only a sustained move above the middle Bollinger Band can alleviate the current bearish trend. Immediate support is at the lower Bollinger Band at 3870; a break below this level would open up further downside potential. On the 4-hour chart, moving averages are in a bearish alignment, prices are continuously making new lows, and indicators remain weak, clearly indicating a downtrend. There are signs of short-term oversold conditions, but a clear reversal signal is lacking; the PPI data should be closely watched for catalysts. Editor's Summary : Gold is currently facing multiple headwinds. Sticky US inflation, hawkish signals from Federal Reserve officials, and rising US Treasury yields continue to suppress gold prices. While safe-haven demand provides some support, it is insufficient to offset the downward pressure from interest rate expectations. Short-term risk: PPI data may exceed expectations again, causing gold prices to fall below $3870 and continue their downward trend.