Gold falls on firmer dollar, dimming US rate cut hopes

Gold prices fell on Thursday, weighed down by a firmer US dollar and waning hopes for near‑term US interest‑rate cuts as higher energy prices stoked inflation concerns.

Spot gold was down 0.4 per cent at $5,153.79 per ounce as of 05:45 GMT. US gold futures for April delivery fell 0.4pc to $5,159.20.

The US dollar firmed 0.2pc, making dollar-priced bullion more expensive for holders of other currencies.

“I think the USD strength and interrelated rates story is a slight headwind for gold despite the actual violence that’s taking place, which is otherwise supportive of gold,” said Nicholas Frappell, global head of institutional markets at ABC Refinery.

Iran said the world should brace for $200-a-barrel oil after its forces struck merchant ships on Wednesday, while the International Energy Agency (IEA) urged a massive release of strategic reserves to blunt one of the worst oil shocks since the 1970s.

Oil prices rose over $100 a barrel, adding to inflation pressures, as Iran stepped up attacks on oil and transport........

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