Khaberni - Gold prices rose on Wednesday as oil prices fell, which calmed inflation fears, while investors await a series of American economic data this week to assess the Federal Reserve's policy outlook.
Gold prices in spot transactions rose by 0.4 percent to $5213.99 per ounce at 01:09 GMT. The U.S. futures contracts for gold in April dropped by 0.4 percent to $5221.80.
The United States and Israel bombed Iran in what the U.S. Department of Defense (Pentagon) and Iranians on the ground described as the strongest airstrikes in the war, despite global market expectations that President Donald Trump will seek to end the conflict soon.
The war led to the closure of the Strait of Hormuz, a vital passageway for a fifth of the world's oil and liquefied natural gas, causing oil tankers to halt for more than a week and forcing producers to stop production as storage filled up, leading to a rise in energy prices.
The U.S. Central Command announced in a statement that the military "destroyed" 16 Iranian mine transporters near the Strait of Hormuz yesterday Tuesday.
Oil prices fell, which calmed inflation fears, a day after Trump anticipated a quick end to the war with Iran, while The Wall Street Journal reported that the International Energy Agency proposed the largest ever withdrawal from strategic oil reserves.
Markets are now waiting for the U.S. Consumer Price Index for February, scheduled to be released later today, and the Personal Consumption Expenditures index- the Federal Reserve's preferred inflation gauge- on Friday.
The CME Group's FedWatch tool indicates that investors expect the Federal Reserve to keep interest rates steady in the current range of 3.5 to 3.75 percent at the end of its two-day meeting on March 18.
For other precious metals, the price of silver in spot transactions rose by 0.6 percent to $88.89 per ounce. The price of platinum climbed by one percent to $2221.48, and the price of palladium increased by 1.5 percent to $1679.73.
