June 20 (Reuters) - Gold held steady on Friday, with
geopolitical tensions escalating in the Middle East as Israel
and Iran continued their air war, while investors remained wary
of possible U.S. involvement.
FUNDAMENTALS
* Spot gold was steady at $3,367.60 an ounce, as of
0020 GMT. Bullion was down 1.9% so far this week.
* U.S. gold futures were also stable at $3,384.20.
* The conflict in the Middle East intensified on Thursday
when Israel bombed Iran's nuclear sites, while Iran fired
missile and drone strikes on Israel, including an overnight
attack on an Israeli hospital. Neither side has signalled an
exit strategy.
* U.S. President Donald Trump will decide in the next two
weeks whether the U.S. will get involved in the Israel-Iran air
war, the White House said on Thursday, raising pressure on
Tehran to come to the negotiating table.
* Meanwhile, U.S. special envoy Steve Witkoff and Iranian
Foreign Minister Abbas Araqchi have spoken by phone several
times since Israel began its strikes on Iran last week, in a bid
to find a diplomatic end to the crisis, three diplomats told
Reuters.
* Trump reiterated his calls for the Federal Reserve to cut
interest rates, saying the rates should be 2.5 percentage points
lower.
* The Fed held rates steady on Wednesday, and policymakers
retained projections for two quarter-point rate cuts this year.
* European officials are increasingly resigned to a 10% rate
on "reciprocal" tariffs being the baseline in any trade deal
between the U.S. and the European Union, five sources familiar
with the negotiations said.
* The U.S. dollar index fell 0.2%, making
greenback-priced bullion more affordable for overseas buyers.
* Elsewhere, spot silver was steady at $36.36 per
ounce, platinum fell 0.7% to $1,297.89, while palladium
was down 0.4% to $1,046.71. All three metals were headed
for weekly gain.
DATA/EVENTS (GMT)
0100 China Loan Prime Rate 1Y, 5Y June
0600 UK Retail Sales MM, Ex-Fuel MM, YY May
0645 France Business Climate Mfg, Overall June
1230 US Philly Fed Business Index June
1400 EU consumer confidence flash June
(Reporting by Anmol Choubey in Bengaluru; Editing by Rashmi
Aich)
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