New Delhi, Sept. 14 -- Gold prices edged lower further on Monday after posting a third consecutive weekly decline in the previous session. The price of non-yielding bullion eased as a surge in oil prices stoked inflation concerns and reinforced expectations that the US Federal Reserve could raise interest rates at its policy meeting this week, scheduled for 15 and 16 September. Since gold is typically seen as an inflation hedge, higher interest rates tend to diminish yellow metal's appeal to investors.

The surge in crude oil prices came about due to closure of Saudi Arabia's key oil pipeline following Iran-backed Houthis attacks along the Red Sea coast on the Kingdom's oil infrastructure. Due to these developments, both 24-karat and 22-k...