<ul>
<li>Iran fires back at bases, ships</li>
<li>US consumer prices increase as expected in February</li>
<li>Standard Chartered maintains positive longer-term view on gold</li>
<li>Spot silver slips over 3%</li>
</ul>
(Updates for US morning hours)
By Ashitha Shivaprasad
March 11 (Reuters) - Gold prices edged lower on Wednesday, weighed down by an uptick in the U.S. dollar and looming inflation concerns that boosted the likelihood of higher interest rates.
Spot gold (XAU=) was down 0.3% at $5,177.50 per ounce, as of
9:18 a.m. ET (1318 GMT). U.S. gold futures (GCcv1) for April delivery fell 1.1% to $5,185.20.
The U.S. dollar index (.DXY) inched up 0.3%. A stronger U.S. currency makes dollar-priced commodities more expensive for holders of other currencies. (USD/)
“The gold market seems to be in a push-and-pull between safe-haven demand driven by the war and concerns over higher-for-longer interest rates,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Gold is often seen as a hedge against uncertainty and inflation, but it does not yield interest, making it less attractive when rates are high.
On the geopolitical front, Iran fired at Israel and targets across the Middle East, while at least three ships were hit in the Gulf, demonstrating Tehran can still fight back and disrupt energy supplies despite the most intense U.S.-Israeli strikes yet.
Meanwhile, oil prices rebounded as markets doubted whether the International Energy Agency’s plan for a record release of oil reserves could offset potential supply shocks from the conflict. Higher oil prices risk stoking inflation by raising energy and transport costs across the economy. (O/R)
Data showed the U.S. consumer price index rose 0.3% in February, in line with forecasts and above January’s 0.2% increase. CPI rose 2.4% in the year to February, also matching expectations.
Analysts at Standard Chartered noted it is not unusual for gold to experience downside pressure for several weeks amid a need for cash.
“We maintain our positive longer-term view and expect gold to resume its uptrend beyond near-term profit-taking,” they added.
Among other metals, spot silver (XAG=) fell 3.1% to $85.67 per ounce, spot platinum (XPT=) lost 0.5% to $2,189.35, and palladium (XPD=) slipped 1.3% to $1,633.30.

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PRECIOUS-Gold eases as firmer dollar, lingering inflation concerns weigh