Khaberni - Gold prices rose slightly on Tuesday, supported by a weak dollar, but they are headed towards recording their worst monthly performance in more than 17 years, after the rise in energy prices led to a decline in hopes for a cut in U.S. interest rates this year.
The spot gold price climbed 0.8 percent to $4544.19 an ounce by 01:14 GMT. U.S. gold futures for April delivery rose 0.3 percent to $4573.20.
The dollar weakened, making dollar-denominated commodities less costly for holders of other currencies.
Gold has lost about 14 percent since the start of the current month, headed towards its biggest drop since October 2008, under the pressure of a rising dollar. However, prices have risen about five percent so far this quarter.
Traders have almost completely ruled out any possibility of the Federal Reserve (the U.S. central bank) cutting interest rates this year, as the rise in energy prices threatens to feed wider inflation.
Before the outbreak of war in the Middle East, there were expectations of two U.S. interest rate cuts this year.
Benchmark oil prices continued their gains to record the biggest monthly rise ever amid an intensifying conflict in the Middle East, raising concerns about supply.
Federal Reserve Chairman Jerome Powell said on Monday that the central bank could wait to see how the war with Iran affects the economy and inflation, indicating that policymakers typically ignore shocks like those caused by rising oil prices.
U.S. President Donald Trump warned that the United States would destroy Iranian energy stations and oil wells if Tehran does not open the Strait of Hormuz, after Tehran described American peace proposals as "unrealistic" and launched waves of missiles at Israel.
For other precious metals, spot silver prices rose 1.2 percent to $70.81 an ounce, platinum prices climbed 0.1 percent to $1901.95, and palladium prices increased 1.1 percent to $1421.45.
