* Gold pares some losses, down 2%
* Brent crude falls over 12% after Trump's remarks
* Trump says he has postponed strikes on Iranian power
plants
(Updates for EMEA mid-session trade)
By Ishaan Arora and Pablo Sinha
March 23 (Reuters) - Gold pared some earlier losses on
Monday after U.S. President Donald Trump said he would delay any
strikes on Iranian power plants and energy infrastructure.
Spot gold was down 2.2% at $4,388.22 per ounce by
1230 GMT, extending losses into a ninth straight session. Before
Trump's announcement, gold had fallen 8% at one point to a
four-month low.
Gold has fallen about 17% since the Middle East conflict
began on February 28, and has retreated about 22% from its
record peak of $5,594.82 reached on January 29. Bullion recorded
it's worst week in 43 years last week.
U.S. gold futures for April delivery fell 4.2% to
$4,382.30.
"Despite having a pretty epic collapse in the early hours,
we're seeing some bargain hunting coming in at the lower levels,
driving the market back to roughly where it ended last week. So
I suspect we've got some traditional, macro plays going on,"
said independent analyst Ross Norman.
Gold fell more than 8% earlier in the session, amid a
strengthening dollar and growing expectations of U.S. rate
rises. Rising energy prices due to the Iran war have stoked
inflation fears and while gold is considered a long-term hedge
against inflation, higher interest rates dim the non-yielding
asset's appeal.
Oil prices fell more than 13% after Trump postponed strikes
on Iranian energy infrastructure.
Trump said the U.S. has had good and productive
conversations with Iran, while Iran's Fars news agency citing a
source reported that there was no direct communication with the
U.S. or through intermediaries.
Some analysts say the broader trajectory for gold could
remain positive, with the metal up about 46% on a one-year
basis.
"Once the dust settles and the current wave of forced
selling runs its course, the outlook for gold in particular may
improve again quite sharply," said Ole Hansen, head of commodity
strategy, Saxo Bank, in a note.
Spot silver was up 0.6% at $68.16 per ounce and
platinum fell 1.3% to $1,897.17. Both metals earlier hit
their lowest levels since mid-December. Palladium climbed
3.6% to $1,454.64.