Beirut: Global gold prices fell on Monday as concerns increased over the possibility of higher interest rates in the United States. Global gold prices saw a decline as investors reacted to rising expectations of increased interest rates in the US.

According to National News Agency - Lebanon, spot gold dropped 0.4% to $4,313.11 per ounce by 03:02 GMT, while US gold futures for August delivery declined 0.7% to $4,336.30 per ounce. Analysts noted that the potential for higher interest rates could diminish the appeal of non-yielding assets, such as gold, which typically do not generate income.

The move reflects market sentiment as investors weigh the implications of potential interest rate hikes on asset allocation. Gold, often seen as a safe haven, becomes less attractive when interest rates rise, as investors tend to shift towards assets that offer better returns. The anticipation of rate increases is influenced by various economic indicators, including inflation and employment data, which are closely monitored by the Federal Reserve.