Gold steadies as safe-haven flows offset strong dollar and reduced rate-cut bets

LONDON, Mar 12 (Reuters): Gold prices held nearly steady on Thursday, as support from safe-haven demand was offset by a stronger dollar and reduced expectations for interest rate cuts.

Spot gold was little changed at $5,183.39 per ounce by 9:11 a.m. ET (1311 GMT). US gold futures for April delivery rose 0.2 per cent at $5,190.50.

The dollar gained for a third consecutive session. The greenback is a competitive safe-haven asset, and a stronger US currency makes gold more expensive for holders of other currencies.

"Gold has been range bound recently. The higher dollar index, rising treasury yields and lack of interest rate cuts are the negative factors, but the conflict in the Middle East has been generating some safe-haven flows," said Phillip Streible, chief market strategist at Blue Line Futures.

"If they can prevent oil prices from climbing further, gold should be in a good place... If crude starts to trend lower, you could see yields ease, the dollar give up some of its gains, and gold futures move higher."

Two tankers were ablaze in Iraqi waters, an apparent escalation in Iranian attacks that have cut off Middle East energy supplies, defying US President Donald Trump's claim to have already won the war he launched two weeks ago.

In reaction, oil prices surged while global shares retreated, as hopes for an imminent de-escalation faded.