Gold prices held steady on a volatile session, with a softer dollar meeting a surge in energy prices that fuelled inflation worries and further dimmed expectations for US Federal Reserve interest rate cuts this year.

Spot gold edged lower 0.1 per cent to $4,488.46 per ounce as of 0431 GMT after having swung between a more than 1pc fall and a marginal gain earlier. U.S. gold futures for April delivery lost 0.1pc to $4,518.30.

The US dollar eased, making dollar-denominated commodities more affordable for holders of other currencies.

“Gold’s price action last week (when it snapped a three-week losing streak) suggested a reaction to oversold behaviour, and a possible reversal of recent declines. However, this needs to be confirmed by price action this week. Given the rapid flow of headline news, it’s easiest to expect volatility,” said Nicholas Frappell, global head of institutional markets at ABC Refinery.