Gold prices dropped in global markets on Monday, falling by about 2% as the US dollar climbed to its highest level in three months.
Reports say the spot price of gold fell by 1.7%, reaching about $5,082.51 per ounce. At the same time, U.S. gold futures dropped by 1.4%, settling around $5,099.40 per ounce.
Financial analysts say several factors pushed prices down. One major reason is the rise in energy costs, which is increasing concerns about global inflation. Because of this, investors now think the Federal Reserve may delay cutting interest rates.
A stronger dollar also played a big role. When the dollar becomes stronger, gold becomes more expensive for people using other currencies, which usually lowers demand.
On top of that, rising yields on U.S. Treasury bonds made gold less attractive to investors. Unlike bonds, gold does not pay interest, so when bond returns rise, some investors move their money away from gold.
For now, global markets remain cautious as investors continue watching geopolitical developments and economic signals.
