Gold settles lower as dollar rises

Gold futures for April delivery fell 1.2%, or $63, to settle at $5,179.1 per ounce

Gold prices settled lower on Wednesday, pressured by a stronger US dollar and persistent inflation concerns fueled by higher energy prices, which reinforced expectations that interest rates in major economies will remain elevated for longer.

Gold futures for April delivery fell 1.2%, or $63, to settle at $5,179.1 per ounce.

Spot silver fell 4.5% to $85.56 per ounce as of 21:05 Makkah time.

The decline came as the dollar strengthened amid the ongoing war in the Middle East and rising oil prices, despite an agreement among member countries of the International Energy Agency to release record volumes from strategic crude reserves.

The continued rise in oil prices has intensified concerns about a potential inflation shock that could force major central banks to keep interest rates steady or raise them further. While gold is typically viewed as a hedge against uncertainty, its appeal tends to diminish in a high interest-rate environment because it yields no income.

The US Consumer Price Index rose 0.3% in February, while the annual inflation rate held steady at 2.4%, in line with expectations, suggesting inflationary pressures had not intensified before the outbreak of the conflict.