PRECIOUS-Gold flat as investors weigh US-Iran tensions, focus on inflation data

*

US weekly jobless claims fall more than expected

*

Key US inflation data due on Friday

*

Trump presses Iran to make 'meaningful' deal

*

Fed minutes show officials grappling with policy split

(Updates for US closing session)

By Anmol Choubey

Feb 19 (Reuters) - ?Gold prices steadied on Thursday as investors assessed U.S.-Iran ?tensions, while a drop in U.S. jobless claims signalled labour-market stability ahead of inflation data later this week.

Spot ?gold was unchanged at $4,979.18 per ounce by 01:31 p.m. EST (1831 GMT). U.S. ?gold futures for April delivery settled 0.2% lower at $4,997.40.

"We're being ?whipsawed and moving ?sideways with volatility," said Daniel Pavilonis, senior market strategist at RJO Futures.

"Tensions with Iran are supporting gold, ?and while the broader outlook remains quite ?bullish, we could still see one more leg down driven by factors outside the Iran situation."

U.S. President Donald Trump warned Iran ?that it must reach a deal over ?its nuclear ?program or "bad things" will happen, and appeared to set a 10-day deadline before the U.S. might take action.

Geopolitical and economic flashpoints tend to work ?in gold's favour, as the yellow metal is traditionally viewed as a ?safe store of value.

The minutes from the Federal Reserve's January 27-28 meeting, released on Wednesday, showed policymakers were split on the monetary policy path ahead, with several open to hikes if inflation stays high, while others favoured cuts if price pressures ease.

U.S. ?weekly ?jobless claims fell to 206,000 in the week to February ?14, well below expectations for a reading of 225,000, reinforcing the strength signaled ?by last week's robust monthly employment report.

Investors are now awaiting the release on Friday of the U.S. Personal Consumption Expenditures Price Index, the Fed's preferred inflation gauge for further clues on the U.S. central bank's policy trajectory.

Markets currently expect this year's first U.S. interest rate cut to occur in June, according to CME Group's FedWatch Tool. Non-yielding gold tends to ?do well in an environment of low interest rates.

Spot silver rose 0.6% to $77.66 per ounce after climbing more than 5% on Wednesday. Spot platinum fell 0.8% to $2,054.08 per ?ounce, while palladium lost 2.6% to $1,671.34. (Reporting ?by Anmol Choubey in Bengaluru; Editing by Jan Harvey, Paul ?Simao and Alan Barona)