Gold falls on firmer dollar, dimming US rate cut hopes

 Gold prices fell on Thursday, weighed down ‌by a firmer U.S. dollar and waning hopes for near-term U.S. interest rate cuts as higher energy prices stoked inflation concerns. Spot gold was down 0.2% at $5,167.15 per ounce as of 0718 GMT. U.S. ​gold futures for April delivery fell 0.1% to $5,173.10. Get the latest news from India and how it matters to the world with the Reuters India File newsletter. Sign up here. The U.S. dollar firmed 0.2%, making ​dollar-priced bullion more expensive for holders of other currencies. Advertisement · Scroll to continue "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 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 facilities across the ‌Middle ⁠East. Advertisement · Scroll to continue Iran has deployed about a dozen mines in the strait, according to sources, a move that could complicate efforts to reopen the narrow waterway, a key route for global oil and liquefied natural gas shipments. Tankers in the strait have been stranded for more than a ​week, and producers have ​suspended output as ⁠storage nears capacity. Goldman Sachs has delayed its forecast for U.S. Federal Reserve rate cuts, and now expects quarter-point reductions in September and December, ​citing rising inflation risks linked to the Middle East conflict. In ​economic data, ⁠the U.S. consumer price index rose 0.3% in February, matching forecasts and accelerating from January's 0.2% increase. CPI rose 2.4% in the year to February, also in line with expectations. Investors are ⁠now ​awaiting the release of January's delayed Personal Consumption Expenditures ​index on Friday.