PHOTO
Gold prices fell on Thursday, pressured by a firmer U.S. dollar, while higher oil prices renewed inflation worries and dampened hopes for near-term interest rate cuts.
Spot gold was down 0.5% at $5,151.51 per ounce as of 0346 GMT. U.S. gold futures for April delivery fell 0.4% to $5,156.20.
The U.S. dollar firmed 0.3%, making dollar-priced bullion more expensive for holders of other currencies.
"I think the USD strength and interrelated rates story is a slight headwind for gold despite the actual violence that’s taking place, which is otherwise supportive of gold," said Nicholas Frappell, global head of institutional markets at ABC Refinery. Iran said the world should brace for $200-a-barrel oil after its forces struck merchant ships on Wednesday, while the International Energy Agency urged a massive release of strategic reserves to blunt one of the worst oil shocks since the 1970s.
Oil prices jumped in early trade, adding to inflation pressures, as supplies from the Gulf remain constrained amid the U.S.-Israeli war on Iran. Iran has deployed about a dozen mines in the strait, according to sources, a move that could complicate efforts to reopen the narrow waterway, a key route for global oil and liquefied natural gas shipments.
Tankers in the strait have been stranded for more than a week, and producers have suspended output as storage nears capacity.
In economic data, the U.S. consumer price index rose 0.3% in February, matching forecasts and accelerating from January's 0.2% increase. CPI rose 2.4% in the year to February, also in line with expectations.
Investors are now awaiting the release of January's delayed Personal Consumption Expenditures index on Friday.
Spot silver fell 1.1% to $84.85 per ounce. Spot platinum lost 0.3% to $2,162.88, while palladium rose 0.6% to $1,646.46. (Reporting by Noel John in Bengaluru; Editing by Sumana Nandy and Harikrishnan Nair)





















