Gold Under Pressure as Inflation Concerns and Rising Yields Bite

Gold prices are under pressure as inflation concerns and rising yields weigh on the non-yielding asset.

The upcoming US CPI report is a key catalyst, with a hotter reading potentially extending the decline and a softer print offering gold a chance to recover.

Gold's technical picture has weakened after a second consecutive weekly decline and a break below $4,310, with $4,100 and $4,000 coming into focus if that support fails decisively.

The backdrop for gold has become increasingly complicated. Rising oil prices, amid renewed tensions in the Middle East, are adding to inflationary pressures, while higher bond yields are making non-yielding assets such as gold less attractive.