Gold prices decreased slightly on Monday as demand for the non-yielding metal was depressed by concerns about rising interest rates for a longer period of time and a tentative agreement reached over the weekend to postpone the U.S. debt ceiling.

Spot gold slid by 0.1% at $1,945.11 per ounce lingering close to the lowest level touched on Friday while US gold futures steadied at $1,944.30.

According to figures released on Friday, American consumers spent more in April than was anticipated, and inflation picked up.

According to the estimate, there is a 63% possibility that the U.S. central bank will increase interest rates by 25 basis points in June and leave them there for the rest of the year.

When interest rates increase, investors tend to lose interest in gold, which has no inherent income.

Wang Tao, a technical analyst for Reuters, predicts that gold will break a support level at $1,938 and drop into the $1,919-$1,929 zone.