Gold gains on softer dollar, markets eye US-Iran developments

Gold prices rose on Thursday, supported by a weaker dollar, while investors weighed growing optimism over a potential U.S.-Iran deal to end the war that has pushed up energy prices and fuelled fears of higher inflation.

FUNDAMENTALS

* Spot gold rose 0.9% to 4,830.66 per ounce by 0103GMT. U.S. gold futures ‌for June ⁠delivery gained ⁠0.6% to $4,852.40.

* The U.S. dollar hovered near its lowest level in more than a month, making the greenback-denominated commodities, such as bullion, more affordable for holders of other currencies.

* Global equities surged while oil prices edged lower on hopes for a cooling of U.S.-Iran tensions.

* The Trump administration expressed optimism on Wednesday about reaching a deal ⁠to end ‌the war with Iran, while warning of increasing economic pressure against Tehran if it remains defiant.

* U.S. President Donald ⁠Trump said he believes the war with Iran is nearly over, even as a shipping blockade he announced came into effect and traffic through the Strait of Hormuz remained well below normal levels.

* Traders now see a 29% chance of a 25-basis-point U.S. interest rate cut this year. Before the war, there were expectations of two rate cuts for this year.

* ‌SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.2% to 956.56 metric tons on Tuesday.

* Meanwhile, the silver market ⁠is heading for a sixth year of structural deficit, with 762 million troy ounces drawn from stocks since 2021, raising the risk of a renewed liquidity squeeze despite weaker demand expectations, the Silver Institute and consultancy Metals Focus said on Wednesday.

* Spot silver rose 1.4% to $80.17 per ounce, platinum gained 1.2% to $2,134.55, and palladium was up 1.1% at $1,590.14.

DATA/EVENTS (GMT)

1230 US Initial Jobless Clm 11 Apr,

1230 US Philly Fed Business Indx Apr

1315 US Industrial Production MM Mar