PRECIOUS-Gold falls more than 1% as Houthi attack lifts oil, dims Fed cut hopes

March 30 (Reuters) - Gold prices fell more than 1% on Monday, as a surge in energy prices fuelled inflation worries and dampened expectations for U.S. Federal Reserve interest rate cuts this year.

FUNDAMENTALS

Spot gold XAU= fell 1.2% to $4,439.45 per ounce as of 0102 GMT. U.S. gold futures GCcv1 for April delivery shed 1.2% to $4,470.30.

Gold has lost about 16% so far this month, marking its steepest monthly fall since October 2008, pressured by a stronger U.S. dollar, which has gained more than 2% since the U.S.-Israeli war on Iran began on February 28. USD/

Brent crude oil climbed above $115 a barrel after Yemeni Houthis launched their first attacks on Israel over the weekend, widening the ongoing war and adding to inflation woes. O/R

While inflation typically boosts gold's appeal as a hedge, elevated interest rates weigh on the non-yielding metal's demand.

Pakistan said on Sunday it was preparing to host "meaningful talks" in coming days to end the Iran war, despite Tehran saying it was ready to respond if Washington deployed troops on the ground.

Meanwhile, gold demand in India saw a slight uptick last week as softer prices drew some buyers, though many remained cautious and waited for further declines. In China, premiums narrowed as demand slowed. GOL/AS

Spot silver XAG= fell 1.2% to $68.67 per ounce, spot platinum XPT= lost 0.6% to $1,850.92 and palladium XPD= held steady at $1,377.12.