Commodities
Gold Prices Fall Amid Inflation Fears and Rate Hike Expectations
Gold prices dipped in early Asian trading on Monday as tensions in the Middle East added to inflation concerns and fueled expectations of higher interest rates.
The spot gold price fell by 0.2% at $4,368.33 per ounce, while US gold futures for December delivery were down 0.4% at $4,406.70.
The latest escalation in the Yemen conflict saw Houthis launch missile and drone attacks on 'sensitive' sites in Riyadh, Saudi Arabia's capital, over the weekend.
As major central banks raise interest rates to combat inflation, gold's appeal as an inflation hedge is being diminished by rising borrowing costs making other assets more attractive.