PRECIOUS-Gold advances on US-Iran tensions as markets weigh Fed policy path

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Weekly jobless claims data due at 1330 GMT

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US PCE data due on Friday

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Fed minutes show officials grappling with policy split

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US-Iran still distant on some issues, White House says

(Updates for EMEA session)

By Pablo Sinha

Feb 19 (Reuters) - Gold ?prices extended gains on Thursday after rising more than ?2% in the previous session, as lingering tensions between the United States and Iran prompted a flight to ?safety, while investors evaluated the Federal Reserve's monetary policy path.

Spot gold rose 0.2% ?to $4,989.09 per ounce by 1227 GMT. U.S. gold futures for April ?delivery held steady ?at $5,008.60.

"Geopolitical concerns are front and centre with reports that, if the U.S. were to take military action ?against Iran, it could go on for several ?weeks," said Jamie Dutta, market analyst at Nemo.money.

Some progress was made during Iran talks this week in Geneva but distance remained on ?some issues, the White House said ?on Wednesday.

FED LARGELY ?UNITED

Top U.S. national security advisers met in the White House Situation Room on Wednesday to discuss Iran and were told all U.S. military forces deployed ?to the region should be in place by mid-March.

Meanwhile, the Fed's January ?minutes showed it largely united on holding interest rates steady, but divided over what comes next, with "several" open to rate hikes if inflation remains elevated, while others were inclined to support further cuts if inflation recedes.

The weekly jobless claims data, due later ?in ?the day, and Friday's Personal Consumption Expenditures report, the Fed's preferred inflation ?gauge, will provide further clues on the central bank's policy trajectory.

Markets currently expect ?this year's first interest rate cut to be in June, according to CME's FedWatch Tool.

Non-yielding bullion tends to do well in low-interest-rate environments.

Spot silver rose 0.9% to $77.87 per ounce after climbing more than 5% on Wednesday.

Silver is "supported by tight supply and low COMEX stock levels ahead of the delivery period of the March contract. However, given the extent of the historic ?correction earlier this month, silver is not back on safer ground until it trades back above $86," said Ole Hansen, head of commodity strategy at Saxo Bank.

Spot platinum fell ?0.6% to $2,059.55 per ounce, while palladium lost ?1.7% to $1,686.47. (Reporting by Pablo Sinha in Bengaluru; Editing by ?David Holmes and Joe Bavier)