On Thursday, gold prices saw a minor drop, impacted by a stronger dollar, while increasing oil prices raised worries about inflation and moderated hopes for upcoming interest rate cuts. Spot gold fell by 0.2%, settling at a price of $5,165.73 per ounce as of 0103. Gold futures in the U.S. for April delivery saw a decrease of 0.2%, closing at $5,171.40. The U.S. dollar gained 0.2%, leading to a rise in the cost of dollar-priced commodities like bullion for those holding alternative currencies. Iran signaled that the global economy ought to brace for $200-a-barrel oil after its military actions against merchant vessels on Wednesday. In the meantime, the International Energy Agency urged a substantial release of strategic reserves to address one of the most intense oil shocks since the 1970s.

Oil prices jumped in early trading, intensifying inflationary pressures, as supplies from the Gulf remain constrained amid the U.S.-Israeli conflict with Iran. Sources indicate that Iran has placed around twelve mines in the Strait of Hormuz. This move could hinder attempts to reopen the narrow waterway, an essential passage for global oil and liquefied natural gas shipments. Following the start of conflict, the U.S. and Israel have targeted various Iranian sites, including air defenses, nuclear facilities, and senior officials.

The ongoing conflict has effectively closed the Strait of Hormuz, leading to tankers being stranded for over a week and forcing producers to halt output as storage nears its limits. In economic data, the U.S. consumer price index rose by 0.3% in February, matching expectations and indicating a faster pace compared to January’s 0.2% increase. The Consumer Price Index rose by 2.4% in the year prior to February, matching expected results.

Investors are eagerly awaiting the upcoming release of January’s delayed Personal Consumption Expenditures index this Friday. Spot silver held steady at $85.82 per ounce. Spot platinum rose by 0.3% to $2,175.32, and palladium saw an increase of 0.6% to $1,646.17.