With prices falling from the CPI-inspired highs following firmer-than-expected jobless claims data, and rates and the USD again trending higher, it is likely that positioning will tilt to the short end as we approach Fed decision day. 

With core CPI still running at a high 4.8 percent and employment staying firm, US monetary officials will continue to talk hawkish after they deliver another 25 bps hike on Wednesday. This is unlikely to be a positive for Gold and we should see it trade near key support levels.