PRECIOUS-Gold extends gains on softer dollar; focus remains on Iran war

(Updates for US morning hours)

* Trump says Iranian leader has asked for ceasefire

* US dollar falls for second straight day

* US private payrolls increase steadily in March, ADP says

By Ashitha Shivaprasad

April 1 (Reuters) - Gold rose for a fourth straight session to nearly a two-week peak on Wednesday as the U.S. dollar slipped, while traders focused on the war in the Middle East and its implications for global monetary policy. Spot gold was up 1.3% to $4,728.75 per ounce by 1309 GMT after hitting its highest level since March 19 earlier in the session. U.S. gold futures gained 1.7% to $4,755.70.

The U.S. dollar dropped for a second straight day, making greenback-priced bullion more attractive to holders of other currencies. "Gold prices could move back above $5,000 per ounce if we're on a path toward de-escalation, as rate-cut expectations could creep back in," said Bob Haberkorn, senior market strategist at RJO Futures. "The focus is on Iran and the Strait (of Hormuz) - how this conflict unfolds, and what the path forward looks like," he added. Iran's new leader has asked the U.S. for a ceasefire, U.S. President Donald Trump said in a Truth Social post. "We will consider when Hormuz Strait is open, free, and clear. Until then, we are blasting Iran into oblivion," he said.

Spot gold fell more than 11% in March as higher energy prices from the Iran war stoked inflation worries and led markets to scale back expectations for looser monetary policy.

Bullion is typically seen as a safeguard during geopolitical turmoil and inflation, but high interest rates reduce the appeal of the non-yielding metal. "An end to the conflict could prove a double-edged sword (for gold). On one hand, a lasting peace agreement would remove the geopolitical safe-haven bid that supported prices in the run-up to the conflict," IG market analyst Tony Sycamore said. Lower oil prices and easing inflation also could revive expectations of 2026 Fed cuts, Sycamore added.

U.S. private payrolls increased steadily in March, the ADP's national employment report showed. Meanwhile, U.S. retail sales rose solidly in February, but surging gasoline prices due to the war could crimp spending in the months ahead. Spot silver fell 0.5% to $74.70 per ounce, platinum lost 0.3% to $1,942.80 and palladium eased 0.8% to $1,464.88. (Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Paul Simao)