Gold rises off one-month low; firm dollar, hawkish Fed cap gains

Gold prices inched higher on Thursday after briefly touching a more than one-month low, but gains were capped by a firm dollar and the Federal Reserve's hawkish stance, which has limited hopes for near-term rate cuts.

FUNDAMENTALS

* Spot gold added 0.4% to $4,838.39 per ounce as of 0115 GMT, rebounding after ‌hitting its ⁠lowest ⁠since February 6 earlier in the day. Prices fell 3.7% on Wednesday.


* U.S. gold futures for April delivery shed 1.1% to $4,839.90.

* The dollar firmed, making greenback-priced bullion more expensive for holders of other currencies.

* Oil prices climbed above $110 a barrel after Iran attacked several energy facilities across the Middle East following a strike on its South ⁠Pars gas ‌field, adding fresh inflation concerns.

* The closure of the Strait of Hormuz kept crude elevated, raising transport and manufacturing ⁠costs. While rising inflation backdrop typically boostsgold's appeal as a hedge, high interest rates reduce demand for the non-yielding metal.

* The U.S. Federal Reserve and Bank of Canada both struck hawkish tones on Wednesday as surging energy prices arising from the Iran conflict clouded the inflation outlook.

* Both central banksheld rates steady, but warned of risks that rising energy costs ‌could fan a more persistent inflation spike.

* Meanwhile, U.S. President Donald Trump's administration is considering deploying thousands of U.S. troops to reinforce operations in the ⁠Middle East.

* Spot gold has fallen more than 9% since the U.S.-Israeli strike on Iran on February 28, pressured by a stronger dollar, which has emerged as one of the clearest "safe-haven" winners.

* Spot silver gained 0.5% to $75.74 per ounce. Spot platinum rose 0.9% at $2,040.46 and palladium added 0.9% to $1,488.75.

DATA/EVENTS (GMT)

1230 US Initial Jobless Clm 14 Mar,

1230 US Philly Fed Business Indx Mar

1230 US New Home Sales-Units Jan

1200 UK BOE Bank Rate Mar -- Japan JP BOJ rate Decision 19 Mar.