By Brijesh Patel and Anmol Choubey (Reuters) -Gold prices gained on Thursday, as rising tensions in the Middle East buoyed demand for the safe-haven asset, although the U.S. Federal Reserve's cautious stance on future rate cuts kept gains in check.

"Gold is trading at about $3,375 (about ₹97,000) as investors keep a careful eye on the worsening Middle East conflict after the U.S. became involved in Israeli strikes on Iran. The Israel-Iran conflict has given new impetus to a surge that has raised gold prices by about 30% this year," said Dr Renisha Chainani, Head-research, Augmont.

GOLD prices rose on Thursday, as rising Middle East tensions boosted demand for safe-haven assets, while softer-than-expected US inflation data raised expectations of potential interest rate cuts by the Federal Reserve.