Gold Pulling Back Sharply Amid U.S. Dollar Strength

(RTTNews) - Gold prices have moved sharply lower during trading on Thursday, more than offsetting the modest increase seen in the previous session.

After rising $11 or 0.2 percent to $5,134.70 during Wednesday's trading, gold for April delivery has tumbled $51.10 or 1.0 percent to $5,083.60 an ounce.

The sharp pullback by the price of the precious metal comes amid an increase in the value of the U.S. dollar, with the U.S. dollar index climbing by 0.5 percent to its highest levels in well over a month.

The advance by the dollar and the subsequent pullback by gold comes as traders continue to keep an eye on the conflict in the Middle East.

Iran has claimed it struck a U.S. oil tanker in the northern Persian Gulf, raising fears of a wider conflict after the Islamic republic threatened to halt shipping through the vital Strait of Hormuz.

Defense Secretary Pete Hegseth has also signaled a possible longer time frame for the conflict than has previously been floated by the Trump administration, saying the war could last up to eight weeks but might be over sooner.

The price of crude oil has also resumed its recent surge amid concerns about supply disruptions, adding to concerns about the outlook for inflation. Meanwhile, a day ahead of the release of the more closely watched monthly jobs report, the Labor Department released a report showing first-time claims for U.S. unemployment benefits came in flat in the week ended February 28th.