Gold Edges Lower on Firmer Dollar, Renewed Inflation Fears

March 12 (Reuters) - Gold prices edged lower on Thursday, pressured by a firmer dollar, while higher oil prices renewed inflation worries and dampened hopes for near-term interest rate cuts.

FUNDAMENTALS

Spot gold XAU= fell 0.2% to $5,165.73 per ounce as of 0103 GMT. U.S. gold futures GCcv1 for April delivery fell 0.2% to $5,171.40.

The U.S. dollar firmed 0.2%, making dollar-priced commodities like bullion more expensive for holders of other currencies. USD/

Iran said the world should brace for $200-a-barrel oil after its forces struck merchant ships on Wednesday, while the International Energy Agency urged a massive release of strategic reserves to blunt one of the worst oil shocks since the 1970s.

Oil prices jumped in early trade, adding to inflation pressures, as supplies from the Gulf remain constrained amid the U.S.-Israeli war on Iran. O/R

Iran has deployed about a dozen mines in the Strait of Hormuz, according to sources, a move that could complicate efforts to reopen the narrow waterway, a key route for global oil and liquefied natural gas shipments.

Since launching their war, the U.S. and Israel have struck multiple Iranian targets, including air defenses, nuclear sites, and senior leadership.

The fighting has effectively shut the Strait of Hormuz, leaving tankers stranded for more than a week and forcing producers to suspend output as storage nears capacity.

In economic data, the U.S. consumer price index rose 0.3% in February, matching forecasts and accelerating from January's 0.2% increase. CPI rose 2.4% in the year to February, also in line with expectations.

Investors are now awaiting the release of January's delayed Personal Consumption Expenditures index on Friday.

Spot silver XAG= was steady at $85.82 per ounce. Spot platinum XPT= gained 0.3% to $2,175.32 and palladium XPD= rose 0.6% to $1,646.17.