Gold slips as stronger dollar, rising oil revive inflation concerns

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.