FUNDAMENTAL OVERVIEW The price action in gold has been mildly negative since Friday after the strong US NFP revived Fed rate hike bets and increased real yields. Higher real yields raise the opportunity cost of holding gold because gold pays zero interest while safe government bonds offer a positive, inflation-adjusted return.The key themes to watch are the US-Iran war and Fed tightening expectations. With tensions in the Middle East escalating, oil prices have been rising steadily, increasing inflation risks. The Fed, on the other hand, has been leaning against higher inflation expectations by adopting a hawkish bias and signalling rate hikes in case core inflation started to move in the wrong direction. This is why the US CPI report on Friday is going to be a key event. Unless, we get some surprising breakthrough in US-Iran relations, the price action will likely remain mostly rangebound or a bit negative for gold as traders at some point might start hedging into the CPI release.A soft or in-line CPI will likely give gold a boost as Fed’s Waller mentioned that he won’t consider a rate hike unless we get a hot CPI. Conversely, an upside surprise in core monthly inflation data will likely trigger another selloff in gold on stronger rate hike bets. GOLD TECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can see gold is approaching the 4,311 support. If the price gets there, we can expect the buyers to step in with a defined risk below the support to position for a rally into the 4,890 level. The sellers, on the other hand, will want to see the price breaking lower to pile in for a drop into the 3,885 level next.GOLD TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we have a downward trendline defining the recent bearish structure. If we get a pullback into the trendline, we can expect the sellers to lean on it with a defined risk above it to keep pushing into new lows. The buyers, on the other hand, will look for a break higher to increase the bullish bets into the 4,890 level next.GOLD TECHNICAL ANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, we have a minor downward trendline defining the bearish momentum on this timeframe. The sellers will likely continue to lean on the trendline with a defined risk above it to keep pushing into new lows, while the buyers will look for a break higher to pile in for a pullback into the 4-hour trendline. The red lines define the average daily range for today.UPCOMING CATALYSTSTomorrow, we get the US PPI report and the US Jobless Claims figures. On Friday, we conclude the week with the US CPI report. This article was written by Giuseppe Dellamotta at investinglive.com.