By Sherin Elizabeth Varghese

(Reuters) – Gold prices extended losses for a fourth straight session on Wednesday, weighed down by a strengthening dollar and rising bond yields following news that U.S. consumer prices rose as expected in October.

The Labor Department also reported slower progress toward lower inflation since mid-year; This suggests that the Fed may cut fewer interest rates next year.

Spot gold was down 0.7% to $2,580.39 an ounce by 13:49 ET (1849 GMT), after hitting a nearly two-month low at the start of the session.

US gold futures fell 0.8 percent to $2,586.50 per ounce.

Benchmark US 10-year bond yields rose as the dollar approached a seven-month high against major currencies. (USD/)US/)

“CPI increased but missed expectations, leading to a mixed impact on gold prices. Markets increased bets on a potential 25 basis point rate cut in December,” said Zain Vawda, market analyst at OANDA MarketPulse.

According to the CME FedWatch tool, traders are pricing the likelihood of a Fed rate cut in December at 82%, down from around 58% pre-data.

But investors believe Trump’s presidency could cause the Fed to pause its expansion cycle if inflation picks up after expected new tariffs.

“There is potential for a slight rebound in gold prices to around $2,650 per ounce in the short term, but may fall again later,” Vawda added.

Looking ahead, the US Producer Price Index (PPI) and weekly unemployment claims will be released on Thursday, with retail sales data due on Friday. Statements by Fed Chairman Jerome Powell and other central bank officials are also on the radar.

“Gold bulls’ next upside price objective is to produce a close above solid resistance at $2,700. The bears’ next short-term downside price objective is to push futures prices above solid technical support at $2,500,” said Jim Wyckoff, senior market analyst at Kitco Metals. pushing it under.” he said. he said in a note.

Spot silver fell 0.5 percent to $30.55 per ounce. Platinum fell 0.9% to $938.60 per ounce, while palladium fell 1.3% to $932.10 per ounce.

(Reporting by Sherin Elizabeth Varghese, Brijesh Patel and Anjana Anil in Bengaluru; Editing by Shreya Biswas, Richard Chang and Mohammed Safi Shamsi)