Gold steady as markets focus on potential US-Iran peace deal

Gold prices held largely steady near a one-week high on Thursday as investors remained on the sidelines awaiting further details on a potential U.S.-Iran peace deal.

FUNDAMENTALS

* Spot gold was unchanged at $4,688.16 per ounce, as of 0059 GMT, after rising about 3% on Wednesday to its highest level since April 27.


* ‌U.S. gold ⁠futures for ⁠June delivery rose 0.1% to $4,696.60.

* Iran said on Wednesday it was reviewing a U.S. peace proposal that sources said would formally end the war while leaving unresolved the key U.S. demands that Iran suspend its nuclear programme and reopen the Strait of Hormuz.

* Stocks surged to fresh records, dollar and oil prices dropped on Wednesday after ⁠a report ‌that the United States and Iran are closing in on an agreement to end their war. [MKTS/GLOB]

* On the data ⁠front, U.S. private payrolls increased more than expected in April, the ADP's national employment report showed on Wednesday.

* Investors now await the monthly U.S. employment report, due on Friday, which will serve as a test of whether the U.S. economy remains resilient enough to keep the Federal Reserve's monetary policy on hold, or whether a softening labour market could revive the case ‌for rate cuts.

* Fed officials said on Wednesday the ongoing U.S.-backed war with Iran is raising the risk of a sustained inflation shock, with ⁠continued high oil prices and developing concerns about problems with global supply chains.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.2% to 942.50 metric tons on Tuesday. [GOL/ETF]

* Spot silver fell 0.2% to $77.16 per ounce, platinum gained 0.1% to $2,062.50, and palladium was down 0.3% at $1,533.25.

DATA/EVENTS (GMT)

0600 Germany Industrial Orders MM Mar

0600 Germany Manufacturing O/P Cur Price SA Mar

0600 Germany Consumer Goods SA Mar

0830 UK S&P Global PMI: MSC Composite - Output Apr

1230 US Initial Jobless Clm May 2