Spot gold: Fluctuating downward, recommended to short on highs

(1) Analysis rationale: Gold prices have fallen for two consecutive days, breaking below both the 50% retracement at $4,008 and the lower boundary of the $4,050 trading range, which invalidates the range-bound framework. The US October CPI increased by 0.4% month-on-month, exceeding expectations. A 25 basis point rate hike has been fully priced in, and the probability of a 50 basis point hike has further increased. Rising rate hike expectations are creating direct pressure. On the daily chart, the price is trading below both the middle Bollinger Band at $4,055 and the 100-day moving average at $4,200, indicating further downside potential. (2) Key focus: US Treasury yields, US Dollar Index, geopolitical situation (3) Resistance: 4,000; 4,050; 4,080 (4) Support: 3,960; 3,930; 3,900;