March 31 (Reuters) - Gold prices edged higher on
Tuesday, helped by a softer dollar, but were poised for their
worst month in more than 17 years as higher energy prices dimmed
hopes for a U.S. interest rate cut this year.
FUNDAMENTALS
* Spot gold rose 0.8% to $4,544.19 per ounce by 0114
GMT. U.S. gold futures for April delivery gained 0.3% to
$4,573.20.
* The U.S. dollar eased, making greenback-denominated
commodities more affordable for holders of other currencies.
* Gold has lost about 14% so far this month, heading for its
steepest fall since October 2008, pressured by a stronger U.S.
dollar. However, prices are up about 5% so far this quarter.
* Traders have almost completely priced out any chance of a
U.S. Federal Reserve rate cut this year, as higher energy prices
threaten to feed into broader inflation.
* Before the war in the Middle East began, there were
expectations of two Fed rate cuts for this year.
* Benchmark oil prices extended gains towards their largest
ever monthly increase as the Middle East conflict deepened,
raising supply concerns.
* Fed Chair Jerome Powell said on Monday the U.S. central
bank can wait to see how the Iran war affects the economy and
inflation, noting that policymakers typically look through
shocks such as those from higher oil prices.
* U.S. President Donald Trump warned that the U.S. would
obliterate Iran's energy plants and oil wells if Tehran does not
open the Strait of Hormuz, after Tehran described U.S. peace
proposals as "unrealistic" and fired waves of missiles at
Israel.
* Spot silver rose 1.2% to $70.81 per ounce, spot
platinum gained 0.1% to $1,901.95 and palladium
was up 1.1% at $1,421.45.
DATA/EVENTS (GMT)
0600 UK GDP QQ, YY Q4
0600 UK Nationwide house price mm, yy Mar
0645 France CPI (EU Norm) Prelim MM, YY Mar
0645 France CPI Prelim MM, YY NSA Mar
0645 France Producer Prices YY Feb
0900 EU HCIP Flash YY Mar
0900 EU HCIP-X F,E,A,T Flash MM, YY Mar
1400 US Consumer Confidence Mar
(Reporting by Noel John in Bengaluru; Editing by Subhranshu
Sahu)
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