Gold Prices Slump 3 Percent Amid Oil Price Surge and Interest Rate Fears

Gold prices have taken a hit globally due to concerns over inflation and expectations of higher US interest rates. The precious metal fell by 3 percent on Monday, reaching a more than seven-week low.

The spot gold price dropped to $4,156.45 an ounce by 0814 GMT, while UBS analyst Giovanni Staunovo attributed the decline to rising oil prices and increased expectations of further US interest rate hikes.

In Syria, the market also reflected this global trend with a decrease in gold prices. The General Authority for Precious Metals Management set the selling price of 21-carat gold at 16,100 Syrian pounds per gram, while the buying price was set at 15,800 pounds per gram.

Higher oil prices have led to renewed concerns about inflation, which has strengthened expectations that US interest rates could remain elevated. This trend is expected to continue with traders pricing in a 70.3 percent probability of a Federal Reserve rate increase in October.