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

Synopsis

Gold prices remained stable as investors awaited crucial U.S. inflation data and clarity on Iran ceasefire talks. Escalating regional tensions, despite a U.S. ceasefire announcement, have fueled inflation concerns and impacted rate-cut expectations. Analysts anticipate gold to rebound amid ongoing geopolitical risks, while other precious metals saw mixed movements.

Gold prices held steady on Thursday, as investors stayed on the sidelines awaiting clearer signals on the U.S.-Iran ceasefire talks ahead of key U.S. inflation data later in the day.

FUNDAMENTALS

* Spot gold was little changed at $4,715.42 per ounce by 0052 GMT. U.S. gold futures for June delivery fell 0.8% to $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 U.S.

* 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 U.S. ⁠President Donald ‌Trump on Tuesday.

* Spot gold has declined more than 10% since the U.S.-Israeli war on Iran began on February ⁠28, as higher energy prices fuelled inflation concerns and prompted investors to scale back rate-cut hopes.

* Minutesfrom 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 2% 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% to $73.83 per ounce, platinum lost 0.2% to $2,025.75, while palladium firmed 0.3% to $1,559.29.

DATA/EVENTS (GMT)

0600 Germany Industrial Output MM Feb

0600 Germany Industrial production YY SA Feb

0900 Germany Overall Comprehensive Risk Q2

0900 France Overall Comprehensive Risk Q2

0900 UK Overall Comprehensive Risk Q2

1230 US Consumption, Adjusted MM Feb

1230 US Core PCE Price Index MM, YY Feb

1230 US PCE Price Indec MM, YY Feb

1230 US GDP Final Q4

1230 US Initial Jobless Clm April 4

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