Gold steady as markets focus on potential US-Iran peace deal

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.

Fundamentals

Spot gold was unchanged at $4,688.16 per ‌ounce, as of 0059 GMT, after rising about 3% on Wednesday to its highest level since April 27.

US gold futures for June delivery rose 0.1% to $4,696.60.

Iran said on Wednesday it was reviewing a US peace proposal that ​sources said would formally end the war while leaving unresolved ⁠the key US demands that Iran suspend its nuclear programme and ​reopen the Strait of Hormuz.

Stocks surged to fresh records, dollar and ​oil prices dropped on Wednesday after a report that the United States and Iran are closing in on an agreement to end their war.

On the data front, ​US private payrolls increased more than expected in April, the ADP’s national ​employment report showed on Wednesday.

Investors now await the monthly US employment report, due on ‌Friday, ⁠which will serve as a test of whether the US economy remains resilient enough to keep the Federal Reserve’s monetary policy on hold, or whether a softening labour market could revive the case for rate cuts.

Fed officials said on Wednesday ​the ongoing ⁠US-backed war with Iran is raising the risk of a sustained inflation shock, with continued high oil prices ​and developing concerns about problems with global supply chains.

SPDR Gold ⁠Trust , the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.2% to 942.50 metric tons on Tuesday.

Spot silver fell 0.2% to $77.16 per ounce, ⁠platinum ​gained 0.1% to $2,062.50, and palladium was down ​0.3% at $1,533.25.