Summary Gold steadies near one-week high as investors await U.S.-Iran peace deal; dollar weakens, yields ease, oil falls; silver rises, platinum dips, palladium up slightly
(Reuters) - 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.
Spot gold was up 0.1% at $4,692.45 per ounce, as of 0436 GMT, after rising about 3% on Wednesday to hit its highest since April 27. U.S. gold futures for June delivery rose 0.2% to $4,701.
U.S. President Donald Trump predicted a swift end to the war with Iran as Tehran considered a U.S. peace proposal that sources said would formally end the conflict while leaving unresolved key U.S. demands that Iran suspend its nuclear programme and reopen the Strait of Hormuz.
"While a softer dollar and easing oil prices are providing some tailwinds, the yellow metal continues to face resistance from elevated real rates and caution over the practical implications of any deal that gets reached," said Tim Waterer, chief market analyst at KCM Trade.
"Any meaningful peace deal between the US and Iran would likely act as a significant tailwind for gold."
The dollar hovered near a more than three-month low hit in the previous session, making bullion less expensive for holders of other currencies.
Benchmark 10-year U.S. Treasury yields have eased 0.6% so far this week, lowering the opportunity cost of holding gold.
Brent crude oil prices are down about 6% so far this week as optimism grew about a possible end to the war in the Middle East.
Gold prices have fallen more than 10% since the war began in late February.
Elevated crude oil prices can stoke inflation, increasing the likelihood of higher interest rates. While gold is seen as an inflation hedge, high interest rates tend to weigh on the non-yielding asset.
Investors now await the monthly U.S. employment report on Friday to see if the U.S. economy remains resilient enough to keep the Federal Reserve's monetary policy on hold.
Spot silver rose 0.3% to $77.52 per ounce, platinum was down 0.4% at $2,054.95, and palladium gained 0.1% to $1,538.22.
