Gold prices edged higher on Wednesday, as optimism over a potential peace agreement between the United States and Iran tempered concerns around inflation and interest rates staying higher for longer.
FUNDAMENTALS
* Spot gold rose 0.4% to $4,499.69 per ounce by 0059 GMT. It had hit its lowest level since March 30 in the previous session.
* U.S. gold futures for June delivery lost 0.2% to $4,502.30.
* U.S. President Donald Trump said on Tuesday that the United States may need to strike Iran again and that he had been an hour away from ordering an attack before postponing it.
* U.S. Vice President JD Vance said the United States and Iran have made a lot of progress in their talks and neither side wants to see a resumption of the military campaign.
* The current level of interest rates is appropriate for the moment, putting downward pressure on inflation at a time when price pressures remain elevated, Philadelphia Federal Reserve Bank President Anna Paulson said on Tuesday.
* She, however, said it was "healthy" that investors had begun considering scenarios where rates might need to rise.
* The U.S. Federal Reserve will avoid cutting rates this year, according to most economists polled by Reuters who largely pushed long-held calls for reductions into next year on hopes the current inflation flare-up is temporary.
* Investors are waiting for the minutes of the Fed's April policy meeting, due later in the day, to gauge the central bank's monetary policy outlook.
* Spot silver rose 1% to $74.55 per ounce, platinum gained 0.2% to $1,926.70, and palladium rose 0.9% to $1,365.50.
DATA/EVENTS (GMT)
0600 UK Core CPI YY Apr
0600 UK CPI YY Apr
0600 UK CPI Services MM, YY Apr
0900 EU HICP Final MM, YY Apr
