Gold Prices Slip Amid Inflation Fears and Rate Hike Expectations

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

The latest tensions in the Middle East, including a missile attack by Yemen's Houthis on Saudi Arabia's capital Riyadh, have added to these concerns.

Some of the world's top central banks, including the Bank of Japan, Federal Reserve, and European Central Bank, have raised interest rates or signaled further hikes to combat inflation fueled by the Iran war.

Rising rates tend to curb gold demand as investors seek more attractive interest-bearing assets.