Gold held steady on Thursday, as fears of oil-driven inflation and higher global interest rates were offset by optimism around a potential U.S.-Iran peace deal.
FUNDAMENTALS
* Spot gold was unchanged at $4,543.96 per ounce by 0104 GMT. Bullion gained more than 1% on Wednesday after falling to its lowest level since March 30 earlier in the day.
* U.S. gold futures for June delivery gained 0.2% to $4,545.50.
* U.S. President Donald Trump on Wednesday said negotiations with Iran were in the final stages but warned of further attacks unless Iran agreed to a deal, adding that Washington could wait a few days to "get the right answers."
* Iran warned against renewed attacks. "If aggression against Iran is repeated, the promised regional war will extend beyond the region this time," the Revolutionary Guards said in a statement.
* U.S. Treasury yields and oil prices fell on Wednesday as hopes increased that the U.S. is nearing a deal with Iran to end the war in the Middle East, while major stock indexes rose. [MKTS/GLOB]
* Minutes of the Federal Reserve's April meeting showed a majority of Fed policymakers felt "some policy firming would likely become appropriate" if inflation stays persistently above the central bank's 2% target.
* Fed officials also noted that a steady jobless rate and two months of stronger-than-expected job creation indicate the employment market remains resilient and is not in need of lower interest rates to prop it up.
* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.2% to 1,041.74 metric tons on Tuesday. [GOL/ETF]
* Spot silver was steady at $75.96 per ounce, platinum lost 0.2% to $1,947.37, and palladium fell 0.1% to $1,368.75.
DATA/EVENTS (GMT)
1230 US Housing Starts Number Apr
1230 US Initial Jobless Clm May 16, w/e
1230 US Philly Fed Business Indx May
1345 US S&P Global Mfg, Scvc, Comp PMI Flash May
1400 EU Consumer Confid. Flash May
