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Gold prices fell on Thursday,
weighed down by a firmer US dollar and waning hopes for
near-term US interest-rate cuts as higher energy prices stoked
inflation concerns.
Spot gold was down 0.4% at $5,153.79 per ounce as of
0545 GMT. U.S. gold futures for April delivery fell 0.4%
to $5,159.20.
The US dollar firmed 0.2%, 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 rose over $100 a barrel, adding to inflation
pressures, as Iran stepped up attacks on oil and transport
facilities across the Middle East.
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.
Goldman Sachs has delayed its forecast for U.S. Federal Reserve
rate cuts, and now expects quarter-point reductions in September
and December, citing rising inflation risks linked to the Middle
East conflict.
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 0.5% to $85.33 per ounce. Spot
platinum lost 0.3% to $2,162.24, while palladium
rose 0.3% to $1,642.05.
(Reporting by Noel John in Bengaluru; Editing by Sumana Nandy,
Harikrishnan Nair and Rashmi Aich)
Published on March 12, 2026
