Gold prices continue to face heavy selling pressure, sinking to their lowest level since September 19. The US Dollar (USD) has reached a fresh yearly high, buoyed by optimism surrounding US economic growth and elevated US Treasury bond yields, weighing on non-yielding gold.

The outlook for gold remains bearish amid rising bond yields and USD strength. Investors are concerned that US President-elect Donald Trump's policies may fuel inflation, limiting the Federal Reserve's ability to cut interest rates. This has led to a shift away from gold toward higher-yielding assets.

The release of the latest US Consumer Price Index (CPI) further reinforces expectations of fewer rate cuts, adding to downward pressure on gold. As market participants look to upcoming data, including the Producer Price Index (PPI), gold’s near-term prospects are heavily tied to the Federal Reserve's policy stance and the broader economic environment.