Singapore, March 18 (QNA) - Gold prices declined on Wednesday as investors weighed expectations that the US Federal Reserve will maintain a cautious monetary policy stance, amid rising oil prices and mounting inflationary pressures.

Spot gold fell 0.4% to $4,986.79 per ounce, while US gold futures for April delivery declined 0.3% to $4,990.70.

Market sentiment remains pressured by expectations that interest rates will stay elevated for longer, reducing the appeal of gold as a non-yielding asset. Higher borrowing costs typically strengthen yields on income-generating instruments, increasing the opportunity cost of holding bullion.

Rising energy prices have further fueled inflation concerns, particularly as the US-Israeli conflict with Iran enters its third week, driving up transportation and production costs globally.

The US Federal Reserve is widely expected to keep interest rates unchanged for the second consecutive meeting when it announces its policy decision later today, with investors closely monitoring signals on the future path of monetary tightening.

Despite its traditional role as a hedge against inflation and geopolitical uncertainty, gold has come under pressure from the prospect of prolonged high interest rates.

In other precious metals, spot silver rose 0.2% to $79.42 per ounce, while platinum fell 1.6% to $2,089.55 and palladium declined 1% to $1,584.75. (QNA)