Gold prices edged lower on Wednesday, weighed down by an uptick in the US dollar and looming inflation concerns that boosted the likelihood of higher interest rates.
Spot gold was down 0.3% at $5,177.50 per ounce, as of 9:18 a.m. ET (1318 GMT). US gold futures for April delivery fell 1.1% to $5,185.20.
The US dollar index inched up 0.3%. A stronger US currency makes dollar-priced commodities more expensive for holders of other currencies, Reuters reported.
"The gold market seems to be in a push-and-pull between safe-haven demand driven by the war and concerns over higher-for-longer interest rates," said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Gold is often seen as a hedge against uncertainty and inflation, but it does not yield interest, making it less attractive when rates are high.
On the geopolitical front, Iran fired at Israel and targets across the Middle East, while at least three ships were hit in the Gulf, demonstrating Tehran can still fight back and disrupt energy supplies despite the most intense US-Israeli strikes yet.
Meanwhile, oil prices rebounded as markets doubted whether the International Energy Agency's plan for a record release of oil reserves could offset potential supply shocks from the conflict. Higher oil prices risk stoking inflation by raising energy and transport costs across the economy.
Data showed the US consumer price index rose 0.3% in February, in line with forecasts and above January's 0.2% increase. CPI rose 2.4% in the year to February, also matching expectations.
Analysts at Standard Chartered noted it is not unusual for gold to experience downside pressure for several weeks amid a need for cash.
"We maintain our positive longer-term view and expect gold to resume its uptrend beyond near-term profit-taking," they added.
Among other metals, spot silver fell 3.1% to $85.67 per ounce, spot platinum lost 0.5% to $2,189.35, and palladium slipped 1.3% to $1,633.30.
