April 2 (Reuters) - Gold prices climbed to a two-week
high on Thursday, supported by a weaker dollar and signs of
Middle East war de-escalation that may ease inflation pressures,
with markets awaiting comments from U.S. President Donald Trump.
FUNDAMENTALS
* Spot gold was up 0.7% at $4,790.29 per ounce by
0034 GMT, the highest level since March 19. U.S. gold futures
edged 0.1% higher to $4,816.10.
* Trump will address the nation in a televised speech at 9
p.m. EDT (0100 GMT) on Wednesday as his administration signals
it is moving toward a possible exit from the month-long war with
Iran.
* The United States will be "out of Iran pretty quickly" and
could return for "spot hits" if needed, Trump told Reuters on
Wednesday, hours before his scheduled address.
* The dollar index slipped for a third consecutive
session, hovering near one-week low level, and making
greenback-priced bullion more affordable for holders of other
currencies.
* The metal dropped 11% in March after the onset of the
conflict in Iran on February 28, which has driven oil prices
higher and added to inflation pressures, clouding the Fed's path
on monetary policy.
* Fed rate-cut expectations remain low through most of 2026,
with markets largely pricing in no change until a modest 27%
chance of a cut emerges at the December meeting.
* Despite gold's appeal during periods of inflation and
geopolitical tension, higher interest rates tend to curb
bullion's attractiveness by increasing the opportunity cost of
holding the non-yielding asset.
* St. Louis Federal Reserve President Alberto Musalem said
on Wednesday there is no need for the U.S. central bank to
change its interest rate stance right now in the face of rising
inflation risks.
* Holdings of the largest gold-backed exchange-traded-fund
(ETF), New York's SPDR Gold Trust, rose 0.35% on Wednesday
from Tuesday.
* Spot silver rose 0.7% to $75.62, platinum
gained 0.4% to $1,970.60 and palladium added 0.3% to
$1,476.75.
DATA/EVENTS (GMT)
1230 US International Trade $ February
1230 US Initial Jobless Clm March 28 w/e
(Reporting by Pablo Sinha and Anmol Choubey in Bengaluru;
Editing by Sherry Jacob-Phillips)
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