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Gold prices steady as investors look to US-Iran ceasefire; brace for inflation data

The gold?price was steady on Thursday, as investors remained cautious over the 'fragile' U.S.-Iran truce. A key U.S. Inflation Report due later that day will also be a focus for any interest rate clues.

As of 0716 GMT, spot gold was unchanged at $4,715.45 an ounce. U.S. Gold Futures for June Delivery fell 0.8% to $ 4,739.40.

"It does not seem that gold is looking for much?at the moment. Brian Lan, Managing Director of GoldSilver Central, said that there is still much speculation about what will happen after the ceasefire.

Lan predicted that gold would consolidate between $4 607 and $4 860 in the near future.

Donald Trump, the U.S. president, has vowed to keep military assets in Middle East until an agreement with Iran is reached. He also warned that a major increase in violence would occur if Iran failed to comply.

Israel's heaviest strike yet on?Lebanon was carried out Wednesday. It killed hundreds and drew a threat from Iran.

The price of oil rose on Thursday amid concerns that supplies from the Middle East, a key region for producing oil, may not resume fully due to doubts about the durability of the two-week ceasefire.

Since the beginning of the war on February 28, spot gold has fallen more than 10%. Higher energy prices have fueled inflation fears and caused markets to reassess their expectations for interest rate cuts, which in turn reduced non-yielding metal's appeal.

The minutes of the Federal Reserve's meeting on March 17 and 18 revealed that policymakers believed that rate increases?could? be necessary?to combat inflation that continues to exceed the central banks' 2% target.

U.S. The Fed may be able to give more clues about its policy direction by releasing the Personal Consumption Spending data for February at 1230 GMT on Thursday. Also, the March Consumer Price Data on Friday.

Standard Chartered stated in a note published on Wednesday that "we expect gold to continue its 'gains' in the months to come, despite increased?geopolitical risks."

(Reporting by Pablo Sinha and Noel John in Bengaluru; Editing by Sumana Nandy, Subhranshu Sahu, and Harikrishnan Nair) (Reporting from Pablo Sinha and Noel John, Bengaluru. Editing by Sumana Nandy and Subhranshu Sahu. Harikrishnan Nair.)

(source: Reuters)