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Gold prices held largely steady on Tuesday as investors stayed on the sidelines, cautious about Middle East tensions, after U.S. President Donald Trump reportedly said he thinks his war against Iran "is very complete".
FUNDAMENTALS
* Spot gold eased 0.1% to $5,131.24 per ounce, as of 0051 GMT. U.S. gold futures for April delivery rose 0.7% to $5,141.40.
* The dollar fell 0.4%, making greenback-priced bullion cheaper for holders of other currencies.
* Trump on Monday predicteda quick end to the war - ahead of the initial four-week time frame he had laid out - even as Iran's hardliners rallied behind new Supreme Leader, Mojtaba Khamenei, signalling no willingness to back down any time soon.
* The war has effectively shut the Strait of Hormuz, a chokepoint for a fifth of global oil and liquefied natural gas, stranding tankers for over a week and forcing producers to halt output as storage fills, driving energy prices soaring.
* Higher energy costs fuelled inflation concerns and further dimmed the prospects for a near-term cut in interest rates by the U.S. Federal Reserve.
* Investors expect the Fed to keep rates steady at the end of its two-day meeting on March 18, per CME Group's FedWatch tool. The odds of a June hold, which were below 43% last week - when the war began, have now climbed to more than 63%.
* Gold is seen as an inflation hedge, but low rates boost its appeal as a zero-yield asset. * Markets are now awaiting the U.S. consumer price index for February, due on Wednesday, and Personal Consumption Expenditures (PCE) index - the Fed's preferred inflation gauge - on Friday.
* Spot silver rose 0.4% to $87.32 per ounce. Spot platinum fell 0.6% to $2,168.52 and palladium eased 0.1% to $1,689.11.
DATA/EVENTS (GMT) 1400 US Existing Home Sales Feb (Reporting by Noel John in Bengaluru; Editing by Sumana Nandy)





















