April 9 (Reuters) - Gold rose on Thursday as the U.S. dollar weakened, with investors assessing a tenuous ceasefire between the U.S. and Iran as fighting in the Middle East continues, while looking ahead to key U.S. inflation data amid price pressures.
Spot gold was 0.6% higher at $4,743.50 per ounce, as of 1121 GMT, having hit its highest since March 19 on Wednesday. U.S. gold futures for June delivery fell 0.2% to $4,767.80.
"The weaker dollar is giving a bit of an uplift to gold at the moment but with fast news coming out of the Middle East, it does make markets a little bit untradeable from an investment perspective," said independent analyst Ross Norman.
The dollar edged lower after sharp losses in the last session as traders kept their eyes fixed on whether the ceasefire between the U.S. and Iran would hold.
Despite both sides declaring victory in the five-week-old war, key disputes remain unresolved, with U.S. President Donald Trump warning of a major escalation if Iran refuses a deal.
Israel bombed more targets in Lebanon on Thursday, putting the Middle East ceasefire in further jeopardy after its biggest attacks of the war on its neighbour killed more than 250 people and threatened to torpedo Donald Trump's truce from the outset.
Oil prices rose 3% on concerns of continuing restrictions on energy flows through the Strait of Hormuz.
"Is (gold) eyeing the $5,000 level? Yeah, for sure. But I think that that's a little way off just now. We have to see if and how the Strait of Hormuz does indeed open up," Norman added.
Bullion has shed more than 11% since the war began on February 28, as surging oil prices have drastically reduced expectations of U.S. interest rate cuts on heightened inflation concerns.
Minutes from the U.S. Federal Reserve's March meeting showed that more policymakers felt rate hikes could be needed to counter inflation that continues to exceed the central bank's targets.
Investors now await Personal Consumption Expenditures (PCE) data for February, due at 1230 GMT, for more cues on U.S. monetary policy trajectory.
Among other metals, spot silver rose 0.1% to $74.16 per ounce, platinum <XPT=> added 0.2% to $2,034.21 and palladium was 0.6% higher at $1,563.48.
Reporting by Ishaan Arora in Bengaluru; Editing by Maju Samuel and Tasim Zahid
