September Rate Hike Threat Looms Over Gold

The US economic data has kept the risk of a September Fed rate hike alive, putting pressure on gold prices. The metal ended last week near $4,429 as strong US Treasury yields added to the downward trend.

Rising oil prices and inflation may also keep gold under pressure until further notice. The upcoming CPI and PPI reports could decide the next move in gold, with market participants still uncertain about the interest rate path.

In a potential worst-case scenario for gold investors, a break below $4,300 could push the metal toward the major $4,000 support level. Conversely, a move above $4,530 may open up the way toward $4,800-$5,000.