Gold reversed early gains and slipped toward $4,030 an ounce on Wednesday, as the US dollar climbed to its strongest level since April 2025, boosted by hotter-than-expected inflation data and hawkish signals from the Federal Reserve. A modest rebound in oil prices, after their recent drop to 10-week lows, further stoked inflation concerns. US consumer prices rose 0.4% in October, exceeding the consensus forecast of 0.3%. In response, traders raised the implied probability of a Fed rate hike in December to 100%, up from 84% prior to the data release, according to the CME FedWatch Tool, with expectations for a larger 50-basis-point move also gaining traction. At the same time, Fed Governor Christopher Waller indicated that stubborn core inflation could justify a half-point increase as early as December, while other officials, including Anna Paulson and Michelle Bowman, struck similarly hawkish notes, reinforcing expectations of further monetary tightening and weighing on non-yielding gold.