March 23 (Reuters) - Gold prices slipped more than 3% on Monday, extending their drop to a roughly four-month low, as an escalating Middle East conflict stoked inflation concerns and expectations of higher global interest rates.
<h3>FUNDAMENTALS</h3>
<ul>
<li>Spot gold (XAU=) was down 3.3% at $4,340.09 per ounce, as of 0100 GMT, extending losses for a ninth consecutive session. The metal, which fell on Monday to its lowest level since January 2, lost more than 10% last week.</li>
<li>U.S. gold futures (GCcv1) for April delivery fell 5% to $4,347.</li>
<li>Escalating the three-week-old war, Iran said on Sunday it would strike the energy and water systems of its Gulf neighbours in retaliation if U.S. President Donald Trump follows through with a threat delivered a day earlier to hit Iran’s electricity grid in 48 hours.</li>
<li>Iran’s Revolutionary Guards said if Iranian power plants are attacked, the Strait of Hormuz will be completely closed and will not be opened until the destroyed power plants are rebuilt.</li>
<li>Oil prices stayed above $110 a barrel, as investors weighed U.S. and Iranian threats to target energy facilities that could escalate the war against the release of millions of barrels of Iranian oil at sea to global markets. (O/R)</li>
<li>The closure of the Strait of Hormuz kept crude elevated, stoking inflation through higher transport and manufacturing costs. While rising inflation typically boosts gold’s appeal as a hedge, high interest rates curb demand for the non-yielding asset.</li>
<li>Meanwhile, market pricing for a U.S. Federal Reserve interest rate hike this year has shot up, and is now seen as far more likely than a rate cut, as interest rate futures were pricing around a 27% chance of a rate hike by December, as per the CME FedWatch tool.</li>
<li>Spot silver (XAG=) lost 3.3% to $65.55 per ounce. Spot platinum (XPT=) fell 4.4% to $1,838.45 and palladium (XPD=) was down 0.4% at $1,398.50.</li>
</ul>
<h3>DATA/EVENTS (GMT)</h3>
1500 EU Consumer Confid. Flash March

SGOL

GBUG

GOLD

Reuters

Abrdn Gold ETF Trust

Sprott Active Gold & Silver Miners ETF

Gold.com

EFUND GOLD MI-R

iShares MSCI Global Gold Miners

Us Gbl GLD & Met

SPDR GOLD TRT-U

EFUND GOLD MI ETF

SD-GOLD

VanEck Gold Miners ETF

ChinaAMC Gold ETF

ChinaAMC CSI SH-SZ-HK Gold Industry Equity ETF

VanEck Junior Gold Miners ETF

VALUEGOLD ETF

SPDR GOLD TRT

Direxion Daily Jr Gold Miners Bull 2X

EFUND GOLD MI-U

SPDR Gold Shares

Invesco Db Precious Metals ETF

Roundhill Gold Miners Weeklypay ETF

ZHONGJIN GOLD

Agnico Eagle Mines

Sprott GLD Miners Etf

PRECIOUS-Gold slides over 3% as Middle East tensions stoke inflation fears