Gold steadies as markets weigh US-Iran ceasefire talks; key US data eyed

NEW YORK: Gold prices held steady on Thursday, as investors stayed on the sidelines awaiting clearer signals on the US–Iran ceasefire talks ahead of key US inflation data later in the day.

Spot gold was little changed at US$4,715.42 per ounce by 0052 GMT. US gold futures for June delivery fell 0.8 per cent to US$4,739.20.

Israel pounded Lebanon with its heaviest strikes yet on Wednesday, killing hundreds of people and drawing a threat of retaliation from Iran, which suggested it would be "unreasonable" to proceed with talks to forge a permanent peace deal with the US

The comments from Iran's lead negotiator and parliament speaker, Mohammed Bager Qalibaf, laid bare the persistent volatility in the region despite a ceasefire announcement by US President Donald Trump on Tuesday.

Spot gold has declined more than 10 per cent since the US-Israeli war on Iran began on Feb 28, as higher energy prices fuelled inflation concerns and prompted investors to scale back rate-cut hopes.

Minutes from the Federal Reserve's March 17-18 meeting showed a growing number of policymakers felt rate hikes could be needed to rein in inflation that continued to exceed the central bank's two per cent target, particularly in light of the Iran war.

Investors are now waiting for the Personal Consumption Expenditures data for February and the weekly jobless claims data due later in the day for additional clues on the Fed's policy path.

"Beyond near-term liquidity needs, we expect gold to continue to rebuild its gains in the coming months amid heightened geopolitical risk," Standard Chartered said on Wednesday.

Among other metals, spot silver fell 0.4 per cent to US$73.83 per ounce, platinum lost 0.2 per cent to US$2,025.75, while palladium firmed 0.3 per cent to US$1,559.29.