Gold is falling as investors are increasingly concerned about rising interest rates

Gold prices fell on Thursday as the dollar rose as a fresh batch of global economic data reinforced investor concerns about interest rates remaining higher for longer than expected.

By 0315 GMT, spot gold fell 0.2 percent to $1,833.57 an ounce, after reaching a one-week high on Wednesday. US gold futures fell 0.3 percent to $1,840.50.

The dollar index rose 0.1%, making the yellow metal more expensive for buyers holding other currencies.

Data on Wednesday showed manufacturing activity in the United States contracted for the fourth consecutive month in February, but there were signs that factory activity was beginning to level off, with a measure of new orders climbing from the lowest level in more than two-and-a-half years.

Fed policymakers will present updated forecasts for the path of the interest rate and the economy at the end of their March 21-22 meeting.

Data on Wednesday also showed consumer prices in Germany rose more-than-expected in February, after data released on Tuesday showed inflation unexpectedly rose in France and Spain, boosting expectations that the European Central Bank will raise interest rates.

Among other precious metals, spot silver fell 0.5 percent to $20.90 an ounce, and palladium lost 0.8 percent, recording $1,428.85.

Platinum fell 0.5 percent to $950.64, after hitting a three-week high in the previous session.