March 30 (Reuters) - Gold prices fell more than 1% on
Monday, as a surge in energy prices fuelled inflation worries
and dampened expectations for U.S. Federal Reserve interest rate
cuts this year.
FUNDAMENTALS
* Spot gold fell 1.2% to $4,439.45 per ounce as of
0102 GMT. U.S. gold futures for April delivery shed 1.2%
to $4,470.30.
* Gold has lost about 16% so far this month, marking its
steepest monthly fall since October 2008, pressured by a
stronger U.S. dollar, which has gained more than 2% since the
U.S.-Israeli war on Iran began on February 28.
* Brent crude oil climbed above $115 a barrel after Yemeni
Houthis launched their first attacks on Israel over the weekend,
widening the ongoing war and adding to inflation woes.
* Traders now see little chance of a U.S. rate cut this
year, as higher energy prices threaten to feed into broader
inflation and limit scope for monetary easing. That contrasts
with expectations for two rate cuts before the conflict began.
* While inflation typically boosts gold's appeal as a hedge,
elevated interest rates weigh on the non-yielding metal's
demand.
* Pakistan said on Sunday it was preparing to host
"meaningful talks" in coming days to end the Iran war, despite
Tehran saying it was ready to respond if Washington deployed
troops on the ground.
* Meanwhile, gold demand in India saw a slight uptick last
week as softer prices drew some buyers, though many remained
cautious and waited for further declines. In China, premiums
narrowed as demand slowed.
* Spot silver fell 1.2% to $68.67 per ounce, spot
platinum lost 0.6% to $1,850.92 and palladium held
steady at $1,377.12.
DATA/EVENTS (GMT)
1000 EU Consumer Confid. Final Mar
1200 Germany CPI Prelim YY Mar
1200 Germany HCIP Prelim YY Mar
(Reporting by Noel John in Bengaluru; Editing by Sumana Nandy)
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