Gold Prices Dip Amid Inflation Woes and Rate Hike Fears

Gold prices dipped in early Asian trading on Monday due to rising inflation concerns and expectations of higher interest rates. The tensions in the Middle East, particularly Yemen's attack on Saudi Arabia's capital Riyadh, added to these worries.

The spot gold price fell by 0.2% to $4,368.33 per ounce as of 0027 GMT, while US gold futures for December delivery decreased by 0.4% to $4,406.70.

The Bank of Japan's decision to raise rates on Friday followed similar moves by the Federal Reserve and the European Central Bank earlier in the week. This tightening cycle is expected to curb demand for gold as investors prefer interest-bearing assets over bullion.