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

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 bolstered expectations of higher interest rates.

Spot gold XAU= was down 0.5% at $5,165.93 per ounce, as of 12:00 p.m. ET (1600 GMT). U.S. gold futures GCcv1 for April delivery fell 1.3% to $5,174.40.

The U.S. dollar index .DXY inched up 0.5%. 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 widely seen as a hedge against uncertainty and inflation, but becomes less attractive when interest rates are high since it is non-yielding.

Oil prices gained nearly 4% as fresh attacks on ships in the Strait of Hormuz worsened supply disruption fears, and analysts said the International Energy Agency's proposal to release oil reserves was inadequate to ease those fears. O/R

Iran said the world should be prepared for oil to hit $200 a barrel as it fired at Israel and other targets across the Middle East.

Meanwhile, 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 4.1% to $84.82 per ounce, spot platinum XPT= lost 1.1% to $2,175.60, and palladium XPD= slipped 1.5% to $1,630.84.