Soft U.S. November CPI sparked a dollar rebound on Thursday, halting and reversing gold's rally.

On Thursday, due to lower than expected November CPI inflation in the United States, the US dollar index plummeted rapidly before the US market, falling to around the 98 mark at one point, and then regained all lost ground, ultimately closing up 0.06% at 98.44; The benchmark 10-year Treasury yield ultimately closed at 4.125%, while the 2-year Treasury yield sensitive to the Federal Reserve policy rate closed at 3.473%.

On Thursday (December 18th), the gold price soared to a nearly two month high of $4374 per ounce, but quickly gave up its gains and barely held its ground at the close. The lower than expected inflation data stimulated expectations of a Fed interest rate cut, pushing down US bond yields and providing a brief upward momentum for the gold price; On the other hand, it weakened the attractiveness of gold as an inflation hedge tool, leading to long positions taking profits.

Due to investors' assessment of the possibility of further US sanctions against Russia and the supply risks posed by the blockade of Venezuelan oil tankers, crude oil remains in a wide range. WTI crude oil ultimately closed down 1.48% at $55.8 per barrel; Brent crude oil ultimately closed down 1.48% at $59.89 per barrel.