Khaberni - Gold prices dropped on Thursday under the pressure of the rising dollar, while the rise in oil prices renewed concerns about inflation and diminished hopes for an interest rate cut in the near term.
By 01:03 GMT, the spot price of gold had fallen 0.2 percent to $5165.73 per ounce. U.S. futures for April delivery of gold also fell 0.2 percent to $5171.40.
The dollar increased by 0.2 percent making commodities priced in the U.S. currency, like gold, more expensive for holders of other currencies.
Iran stated that the world should prepare for oil prices to reach $200 per barrel after its forces attacked commercial ships the previous Wednesday, while the International Energy Agency recommended releasing massive strategic reserves to lessen the impact of one of the worst oil shocks since the 1970s.
Oil prices spiked at the start of trading, furthering inflation pressures as supplies from the Gulf remain limited amid the U.S.-Israeli war on Iran.
Sources reported that Iran planted about 12 mines in the Strait of Hormuz, a move likely to complicate efforts to reopen the waterway. The strait is a major route for global shipments of oil and liquefied natural gas.
The fighting has effectively closed the Strait of Hormuz, leaving tankers stranded for more than a week and forcing producers to halt production as storage capacity nears its limit.
In terms of economic data, the U.S. consumer price index rose 0.3 percent in February, in line with expectations compared to a 0.2 percent increase in January. The index has risen 2.4 percent from the beginning of the year until February, also in line with expectations.
Investors are now awaiting the release of the personal consumption expenditures index data for January tomorrow, Friday, after its delay.
For other precious metals, the spot price of silver remained stable at $85.82 per ounce. The price of platinum in spot transactions rose 0.3 percent to $2175.32, and palladium increased 0.6 percent to $1646.17.
