Gold prices hovered around the lowest level touched in three months on Monday as traders evaluated the likelihood of further interest rate increases by the U.S. Federal Reserve. Nevertheless, gold prices rose as a weaker dollar made metal more appealing for foreign buyers on Monday following a weekend uprising by Russian mercenaries that sparked worries about political unrest in that country and possible effects on oil supplies from one of the biggest producers in the world.

Spot gold edged up 0.3% to $1,926.19 per ounce; meanwhile gold futures advanced by 0.3% to $1,936.00 per ounce.

The previous week saw a nearly 2% decline in gold as aggressive remarks from Fed officials hinted at additional rate hikes to combat sticky inflation.

Non-yielding gold is less tempting when interest rates are higher.

According to CME's Fedwatch tool, investors currently anticipate a 72% chance of a rate hike in July, with rate reduction anticipated starting in 2024.