March 27 (Reuters) - Gold rose 2% on Friday, buoyed by a weaker dollar and ‌bargain hunting, but was on track for a fourth straight weekly decline as surging energy prices fuelled inflation concerns and raised expectations of higher global interest rates. Spot gold rose 2% to $4,466.38 per ounce as of 0637 GMT. ​The commodity has fallen about 0.5% so far this week. U.S. gold futures for April delivery ​gained 1.9% to $4,461. The dollar eased, making greenback-priced bullion cheaper for holders of other ⁠currencies. Gold prices are down about 16% since the U.S.-Israeli war on Iran began on February ​28, pressured by a stronger U.S. dollar, which has gained more than 2% over the same period. "For ​weeks, gold has been treated as a liquidity asset sold to cover volatility and margin calls elsewhere, but at current levels, it is now looking more like a value proposition for investors, which is why it's back ​in favour today," said Tim Waterer, chief market analyst, KCM Trade. "However, hawkish central banks wary of ​persistent oil-driven inflation, continue to act as a heavy lid on gold's ambitions to the upside, keeping any rally ‌firmly ⁠in check." Brent crude held above $105 a barrel, stoking inflation fears, as the Middle East conflict has all but halted shipments through the Strait of Hormuz, a major conduit for roughly one-fifth of global crude and LNG flows. Higher oil prices threaten to push up transport and manufacturing costs, adding to ​inflationary pressures. While inflation typically ​boosts gold's appeal ⁠as a hedge, high interest rates weigh on demand for the non-yielding asset. Traders do not expect any U.S. rate cuts in 2026 and see a ​35% chance of a rate hike by year end, per the CME ​Group's FedWatch ⁠Tool. That compares with expectations for two cuts before the conflict erupted. FEDWATCH U.S. President Donald Trump   said   he would extend a pause on strikes against Iran's energy facilities into April and that talks with Iran were ⁠going "very well," ​but an Iranian official dismissed the U.S. proposal to end ​the war as "one-sided and unfair." Spot silver rose 3.1% to $70.10 per ounce. Spot platinum gained 3.5% to $1,891.02, while palladium rose 3.3% ​to $1,398.30.