Gold price declines on inflation fears, liquidity stress

Gold declined on Thursday as a strengthening dollar and prospects of less monetary easing dimmed its appeal to investors despite the escalating war in the Middle East.

Spot gold fell by as much as 1.5% to $5,053 an ounce, erasing all of its gains this week. US gold futures also declined about 1% to around $5,080 an ounce in New York.

Gold has been trending up in recent weeks with the build-up of geopolitical tensions in the Middle East. The metal gained around 3% through February...