Gold on track for weekly gain; markets focus on US-Iran peace deal prospects

Gold edged higher on Friday and was headed for a weekly gain on easing fears of inflation and higher interest rates as investors remained optimistic about a U.S.-Iran peace deal despite renewed fighting.

FUNDAMENTALS

* Spot gold was up 0.3% at $4,700.80 per ounce, as of 0059 GMT. Bullion has gained 1.9% so ‌far this week.


* ⁠U.S. ⁠gold futures for June delivery were steady at $4,709.90.

* The United States and Iran exchanged fire on Thursday in the most serious test yet of their month-long ceasefire, but Iran said the situation returned to normal while the U.S. said it did not want to escalate.

* The renewed hostilities broke out as Washington was awaiting Iran's response to ⁠a U.S. proposal ‌that would stop the fighting.

* Federal Reserve Bank of Cleveland President Beth Hammack said in a radio interview on ⁠Thursday she expects the central bank to hold interest rates steady well into the future as it navigates a climate of considerable uncertainty.

* Meanwhile, China's central bank loaded up on gold for an 18th straight month in April, data from the People's Bank of China showed on Thursday.

* Hong Kong Exchanges and Clearing (HKEX) is looking to relaunch gold futures, as the city ‌pushes to become an international gold trading and storage hub amid volatile bullion prices driven by geopolitical tensions.

* Markets now await the monthly U.S. ⁠employment report due later in the day to assess how the Fed will move forward with monetary policy this year.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.1% to 941.72 metric tons on Wednesday. [GOL/ETF]

* Spot silver rose 0.8% to $79.10 per ounce, platinum gained 0.5% to $2,032.70, and palladium was up 0.1% at $1,482.50.

DATA/EVENTS (GMT)

0600 UK Halifax House Prices MM, YY Apr

1230 US Non-Farm Payrolls Apr

1230 US Unemployment Rate Apr

1230 US Average Earnings YY Apr

1400 US U Mich Sentiment Prelim May