Rate Hike Risk Pressures Gold as September Deadline Looms

Strong US economic data has kept alive the risk of a September Federal Reserve rate hike, putting pressure on gold. The precious metal's price has been affected by the positive movement in US Treasury yields, which has added to its downward trend. Gold (XAU) ended last week at $4,429 as investors await the upcoming CPI and PPI reports for clues about the next move in interest rates.

The break below $4,300 could push gold toward the major $4,000 support level, according to some analysts. On the other hand, a move above $4,530 could open the way toward $4,800-$5,000. However, gold must consolidate further before finding its next direction as the market remains uncertain about the interest rate path.

The rising oil prices may also keep inflation elevated, which could impact gold's price. The US economic data has been strong recently, with some analysts predicting a rate hike in September to curb inflation and support the dollar. However, others believe that the market is still uncertain about the interest rate path.