April 30 (Reuters) - Gold rose more than 2% on Thursday on a softer U.S. dollar and easing oil prices, but remained on track for a second straight monthly decline as inflation concerns amid the ongoing Iran war clouded the outlook for rate cuts.
Spot gold was up 2.2% at $4,639.26 per ounce, by 9:12 a.m. ET (1312 GMT), after falling to a one-month low on Wednesday.
U.S. gold futures rose 2% to $4,652.30.
A little reprieve in the acceleration in energy prices and the dollar falling on Japanese officials signaling (currency) intervention are benefiting the gold market today, said David Meger, director of metals trading at High Ridge Futures.
The dollar fell sharply after Japanese officials sent firm signals about possible intervention to support the yen. A weaker dollar makes greenback-priced metals more affordable for holders of other currencies.
Global oil prices eased after hitting a four-year high earlier in the session. Surging energy prices have stoked inflation concerns, weighing on central banks' rate-cut paths.
Spot gold is down 0.7% so far this month. Despite being a hedge against inflation and uncertainty, higher interest rates tend to reduce gold's appeal, making interest-bearing assets relatively more attractive.
The Federal Reserve on Wednesday kept rates on hold but raised concerns about inflation. Meanwhile, the Bank of England also kept rates on hold and set out scenarios for the economic impact of the Iran war, one of which could require a "forceful" increase in borrowing costs.
Data showed U.S. personal consumption expenditures price index jumped 0.7% last month, the largest gain since June 2022. The increase was in line with economists' expectations.
Analysts at Citi said selling pressure on gold could remain strong in the very near term due to Middle East uncertainty, but expect the metal to eventually regain its appeal as a safe-haven asset.
Citi kept its price targets for gold unchanged at $4,300 for 0-3 months and $5,000 for 6-12 months.
Meanwhile, gold demand in India was sluggish this week as volatile global prices and a weaker rupee deterred buyers. China premiums, on the other hand, rose on stockpiling ahead of the May Day holiday.
Spot silver rose 3% to $73.63. Platinum gained 4.6% to $1,965.23, and palladium added 1.5% to $1,480.75.
Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Diti Pujara
