Gold prices gained over 1% on Thursday as a ?weaker U.S. dollar lent ?support, while investors assessed ?the durability of a fragile ceasefire between Washington and Tehran and awaited the release of March consumer price index data in the U.S., set for Friday.
Spot gold was up 1.7% at $4,796.50 per ounce at ?11:37 a.m. ?ET (1537 GMT), after hitting a near three-week ?high in the previous session. U.S. gold futures edged up 1% to $4,823.00.
The U.S. dollar index slipped. A softer dollar makes bullion more affordable for buyers using other currencies.
Israel bombed more targets ?in Lebanon, which Tehran says must be included in the ceasefire, while there was ?no sign Iran had lifted its blockade of ?the Strait of Hormuz.
A breakdown in negotiations and a renewed flare-up in the war risk pushing up energy costs and inflation, which could force the Federal Reserve ?to keep rates higher for longer. That could, in turn. reduce the ?appeal of non-yielding gold, despite it being a traditional inflation ?hedge.
Spot gold has dropped nearly 10% since the start of the U.S.-Israeli war against Iran on February 28.
Markets are ?also waiting for U.S. consumer ?price index data for March, due to be released on Friday.
The personal consumption expenditures index — the Fed’s preferred inflation gauge – advanced 2.8% in the 12 months through February, in line with estimates, and likely rose further in March.
Spot silver gained 2.3% ?to $75.84 per ounce, platinum added 2.6% to $2,082.78 ?and palladium edged up 0.3% to $1,559.10.
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