Gold edges lower on firmer dollar, renewed inflation fears

Gold prices edged lower on Thursday, pressured by a firmer dollar, while higher oil prices renewed inflation worries and dampened hopes for near-term interest rate cuts.

FUNDAMENTALS

* Spot gold fell 0.2% to $5,165.73 per ounce as of 0103 GMT. U.S. gold futures for April delivery fell 0.2% to $5,171.40.


* The U.S. dollar firmed ‌0.2%, making ⁠dollar-priced commodities like ⁠bullion more expensive for holders of other currencies.

* 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 of Hormuz, 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.

* Since launching their war, the U.S. and Israel have struck multiple Iranian targets, including air defenses, nuclear sites, and senior leadership.

* The fighting has effectively shut the Strait of Hormuz, leaving ‌tankers stranded for more than a week and forcing producers to suspend 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 was steady at $85.82 per ounce. Spot platinum gained 0.3% to $2,175.32 and palladium rose 0.6% to $1,646.17.

DATA/EVENTS (GMT)

1230 US Housing Starts Number Jan

1230 US International Trade $ Jan

1230 US Initial Jobless Clm 7 Mar