Gold eyes fourth weekly gain on hopes of US-Iran peace deal

Gold held largely steady on Friday and was on track for a fourth straight weekly gain, as hopes for a U.S.-Iran peace deal eased fears of higher inflation and elevated U.S. interest rates.

FUNDAMENTALS

* Spot gold was up 0.1% at 4,794.47 per ounce, as of 0053 GMT. The metal has gained about 1% so ‌far this ⁠week. * ⁠U.S. gold futures for June delivery rose 0.2% to $4,816.40.


* A 10-day ceasefire between Lebanon and Israel went into effect on Thursday and U.S. President Donald Trump said the next meeting between the United States and Iran may take place over the weekend, adding to optimism that the Iran war could be nearing an end.

* Gold prices have fallen more than ⁠8% since ‌the Iran war began in late February amid concerns that elevated energy prices could feed into inflation and keep global ⁠interest rates higher.

* On the data front, new applications for U.S. unemployment benefits fell last week, suggesting labor market conditions remain stable, though employers are cautious about hiring as the war with Iran casts a shadow over the economy.

* Federal Reserve Governor Stephen Miran, by far the U.S. central bank's most aggressive advocate for fast and immediate interest rate cuts, said on Thursday he may ‌again scale back the pace at which he thinks rates should fall because inflation is proving more persistent than expected.

* Meanwhile, U.S. Democratic Senator Elizabeth Warren ⁠said she believes the holes in Fed chair nominee Kevin Warsh's financial disclosures do not pass muster with Senate ethics rules and add to reasons his confirmation hearing set for Tuesday should be delayed.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.2% to 958.65 metric tons on Wednesday.

* Spot silver rose 0.5% to $78.76 per ounce, platinum gained 0.3% to $2,091.45, and palladium was up 0.3% at $1,555.

DATA/EVENTS (GMT)

0900 EU Total Trade Balance SA Feb