Gold Prices Plummet Amid Inflation Fears and Higher Interest Rates

Gold prices have fallen to a seven-week low as investors weigh concerns over rising fuel costs and higher interest rates. Spot gold prices dropped by 3.3% on Monday, reaching $4,146.51 per ounce. This marks the lowest level for gold values since August 5.

The decline in gold prices is largely attributed to a combination of factors, including the ongoing war between the United States and Iran, rising oil prices, and a higher US dollar. These developments have sparked inflation worries, making gold less attractive to investors seeking yield-bearing assets.

According to Sherif Othman, CEO of Poise Investment Advisors, 'Gold does not yield interest, so when Treasury yields go up, investors turn away from gold, impacting its value.'