Gold prices decline with the strength of the dollar and declining hopes for a rate cut

Tim Waterer, chief market analyst at "KCM Trade": "Gold is under pressure today despite market turmoil, as the rise in oil prices to triple-digit levels strengthens the dollar amid inflation fears and declining interest rate expectations."

Crude oil prices jumped more than 15% to exceed $110 per barrel, with the expansion of the war between the United States, Israel and Iran, prompting some major oil producers in the Middle East to reduce supplies amid fears of prolonged disruptions in shipments through the Strait of Hormuz.

Waterer added that a large part of the rise in gold prices over the past twelve months was based on expectations that tend to ease in US monetary policy, but with the resulting inflation risks. For oil exceeding $100 per barrel, the interest rate cut is no longer a settled matter, which prompted gold to re-price itself according to these data.

Investors expect the US Federal Reserve to keep interest rates unchanged at the conclusion of its two-day meeting on March 18, according to the Fed Watch tool affiliated with"CME Group"

The odds of stabilizing interest rates in June also rose to more than 51%, after it was less than 43% last week when the war broke out, according to Reuters.

It is noteworthy that gold, which does not generate a return, usually tends to thrive in an environment of low interest rates.

As for other precious metals, silver fell in spot transactions by 1.3% to $84.42 an ounce, after losing more than 5% earlier in the session, platinum also fell by 1.3% to $2,108.05, and palladium fell by 2.4% to $1,586.75.