Overnight, London's spot precious metals weakened sharply, falling 1.91%. COMEX's December gold futures closed at $4358.5, a decrease of 1.99%. On the one hand, the US PPI for August was higher than expected, further raising expectations for the Federal Reserve's interest rate hike in September. On the other hand, the ECB raised interest rates by 25 bps, which resonated with expectations of global austerity. At the same time, crude oil surged, and upward inflation expectations moved upward again. Focus on tonight's US CPI data. Gold fluctuations may increase further. On the macro side, the volume of existing housing contracts in the US fell 2% month-on-month in August, higher than the 1.6% forecast, and the annual discount rate fell to 3.98 million units, the lowest level in more than a year. Based on the current sales rate, the current inventory is equivalent to 4.9 months of supply, the highest in more than ten years. More importantly, the US PPI rose 5.4% yoy in August, higher than market expectations of 5.3% and the previous value of 4.7%; core PPI rose 4.6% yoy, the highest since June. On the central bank's side, the ECB raised interest rates by 25 basis points yesterday. This is the second rate hike in the year, raising inflation expectations for the next two years. The market expects to raise interest rates once more during the year. On the geopolitical side, the Houthis have taken over important ports in the Red Sea, and the conflict between Saudi Arabia has escalated. After the US PPI data was released, the probability that the Federal Reserve would raise interest rates in September to more than 70%. This also led to another collective correction in precious metals. Today, the US CPI data for August will be released, so it is still necessary to be careful.

Overnight, London's spot precious metals weakened sharply, falling 1.91%. COMEX's December gold futures closed at $4358.5, a decrease of 1.99%. On the one hand, the US PPI for August was higher than expected, further raising expectations for the Federal Reserve's interest rate hike in September. On the other hand, the ECB raised interest rates by 25 bps, which resonated with expectations of global austerity. At the same time, crude oil surged, and upward inflation expectations moved upward again. Focus on tonight's US CPI data. Gold fluctuations may increase further. On the macro side, the volume of existing housing contracts in the US fell 2% month-on-month in August, higher than the 1.6% forecast, and the annual discount rate fell to 3.98 million units, the lowest level in more than a year. Based on the current sales rate, the current inventory is equivalent to 4.9 months of supply, the highest in more than ten years. More importantly, the US PPI rose 5.4% yoy in August, higher than market expectations of 5.3% and the previous value of 4.7%; core PPI rose 4.6% yoy, the highest since June. On the central bank's side, the ECB raised interest rates by 25 basis points yesterday. This is the second rate hike in the year, raising inflation expectations for the next two years. The market expects to raise interest rates once more during the year. On the geopolitical side, the Houthis have taken over important ports in the Red Sea, and the conflict between Saudi Arabia has escalated. After the US PPI data was released, the probability that the Federal Reserve would raise interest rates in September to more than 70%. This also led to another collective correction in precious metals. Today, the US CPI data for August will be released, so it is still necessary to be careful.