Gold Falls as Inflation Concerns Rise and Rate Hikes Loom

Gold prices declined in early Asian trading on Monday due to rising inflation concerns and expectations of higher interest rates.

The spot price of gold fell by 0.2% to $4,368.33 per ounce, while US gold futures for December delivery dropped 0.4% to $4,406.70.

Recent tensions in the Middle East, particularly in Yemen where Houthis attacked 'sensitive' sites in Riyadh with missiles and drones on Saturday, have added to the overall inflation woes.

The prospect of a new global interest rate-tightening cycle is emerging as central banks around the world raise rates to combat rising inflation.