March 27 (Reuters) - Gold prices held steady on Friday,
but were on track for a fourth straight weekly decline, as
surging energy prices from the Middle East conflict fuelled
inflation concerns and bolstered bets on higher-for-longer
global interest rates.
FUNDAMENTALS
* Spot gold was little changed at $4,380.39 per ounce
as of 0101 GMT. Bullion has fallen more than 2% so far this
week.
* U.S. gold futures for April delivery were steady
at $4,375.
* Gold has fallen about 17% since the U.S.-Israeli war on
Iran began on February 28, pressured by a stronger U.S. dollar,
which has gained more than 2% over the same period.
* Brent crude held above $105 a barrel, stoking inflation
fears, as the conflict has all but halted shipments through the
Strait of Hormuz, a major conduit for roughly one-fifth of
global crude and LNG flows.
* Higher oil prices threaten to push up transport and
manufacturing costs, adding to inflationary pressures. Although
inflation typically boosts gold's appeal as a hedge, high
interest rates weigh on demand for the non-yielding asset.
* Traders have fully priced out any Federal Reserve easing
for 2026, compared with expectations for two cuts before the
Iran conflict erupted, per the CME Group's FedWatch Tool.
* U.S. President Donald Trump said he would extend a pause
on strikes against Iran's energy facilities into April and that
talks with Iran were going "very well," but an Iranian official
dismissed the U.S. proposal to end the war as "one-sided and
unfair."
* Separately, U.S. data showed jobless claims rose slightly
last week, signalling a still-stable labor market and giving the
Fed room to keep rates steady while monitoring inflation risks
linked to the war.
* Spot silver fell 0.8% to $67.47 per ounce. Spot
platinum lost 0.2% to $1,823.40, while palladium
gained 1.3% to $1,370.75.
DATA/EVENTS (GMT)
0700 US Retail Sales MM, YY Feb
0700 UK Retail Sales Ex-Fuel MM Feb
1300 US U Mich Sentiment Final Mar
(Reporting by Noel John in Bengaluru; Editing by Sumana Nandy)
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