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Gold faces a difficult macro backdrop as higher oil prices, Treasury yields and renewed expectations of a September Fed hike weigh on the non-yielding asset.

The upcoming US CPI report is the 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 weekly decline and a break below $4,310, with $4,100 and $4,000 coming into focus if that support fails decisively.

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