March 25 (Reuters) - Gold rose more than 2% on Wednesday, buoyed by a softer dollar, while a drop in oil prices eased concerns about elevated inflation and higher global interest rates, amid reports of a U.S. plan to end the Middle East war.
FUNDAMENTALS
* Spot gold rose 2.1% to $4,568.29 per ounce as of 0100 GMT. U.S. gold futures for April delivery gained 3.8% to $4,569.40.
* The dollar eased, making greenback-priced bullion cheaper for holders of other currencies.
* Oil prices fell below $100 a barrel, easing inflation concerns, on reports that the U.S. has sent Iran a 15-point plan to end the war in the Middle East.
* U.S. President Donald Trump said on Tuesday the U.S. was making progress in its efforts to negotiate an end to war with Iran, including winning an important concession from Tehran, while a source confirmed that Washington had sent Iran a 15-point settlement proposal.
* Trump told reporters at the White House that Iran had made a valuable concession related to non-nuclear energy and the Strait of Hormuz, although he did not elaborate.
* Higher crude prices tend to fuel inflation by pushing up transport and manufacturing costs. Although rising inflation typically boosts gold's appeal as a hedge, high interest rates weigh on demand for the non-yielding asset.
* Interest rate futures have erased any prospect for a U.S. Federal Reserve rate cut this year, according to CME Group's FedWatch tool.
* "Despite gold prices trading ~17% below pre-conflict levels amid USD strength and broad-based de-risking, this flush has historically been a tactical dip to buy, and the bullish case strengthens the longer the conflict persists," JP Morgan said in a note.
* Spot silver rose 3.8% to $73.94 per ounce. Spot platinum gained 2.6% to $1,984.05 and palladium was up 1.5% at $1,461.75.
DATA/EVENTS (GMT)
07 UK Core CPI YY Feb
00
07 UK CPI YY Feb
00
07 UK CPI Services MM, YY Feb
00
12 US Import Prices YY Feb
30
(Reporting by Noel John in Bengaluru; Editing by Rashmi Aich)
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