Gold prices rose in the face of a decline in the dollar and US Treasury bond yields

Gold prices rose today, supported by a decline in the dollar and a decline in US Treasury bond yields, while investors evaluate the economic effects of the escalation of the conflict in the Middle East.

By 00:59 GMT, the price of gold in spot transactions rose 0.7 percent to $5,112.34 per ounce.

But US gold futures for April delivery fell 0.2 percent to $5,115.80.

The precious metal has lost 1 percent so far this week, affected by fading hopes for a reduction in US interest rates in the near term, as high energy prices stoke fears of inflation.

The dollar fell slightly, making commodities denominated in it, such as gold, cheaper for holders of other currencies.

US 10-year Treasury bond yields declined, increasing the attractiveness of gold, which does not yield a return.

Oil prices jumped to exceed $100 per barrel, as attacks on tankers in the Gulf and Iranian threats dashed expectations of a rapid calm in the conflict.

With the rise in oil prices, US President Donald Trump again called on Federal Reserve Chairman Jerome Powell to lower interest rates.

According to the CME Fed Watch tool, traders expect the Reserve Board to keep interest rates unchanged in the current range between 3.5 percent and 3.75 percent at the end of its two-day meeting on March 18.

While recent inflation data suggest that price growth is under control, the impact of the war on Iran and the resulting rise in oil prices is not yet reflected in the data.

Investors are now awaiting the release of the personal consumption expenditures index for January later today.

As for other precious metals, the price of silver in spot transactions rose 1.5 percent to $85.03 per ounce.

The price of platinum in spot transactions rose 1.3 percent to $2,159.01, and the price of palladium increased 0.8 percent to $1,630.71.