PRECIOUS-Gold holds ground with market focus on Iran peace talks

* Iran says nuclear issues unresolved

* Traders see 36% chance of a US rate cut this year

* US weekly jobless claims drop amid labor market stability (Updates prices, adds details on jobless claims)

By Ashitha Shivaprasad

April 16 (Reuters) - Gold prices held steady on Thursday, as markets monitored U.S.-Iran developments and their implications for inflation and interest rates.

Spot gold was little changed at $4,789.09 per ounce as of 11:00 a.m. ET (1500 GMT), after hitting a one-month high in the previous session.

U.S. gold futures fell 0.3% to $4,810.90.

"If we do see some type of easing of U.S.-Iran tensions or an end to the war, there will be a stronger likelihood of Federal Reserve rate cuts down the road... And that could support the precious metals complex," said David Meger, director of metals trading at High Ridge Futures.

Optimism grew that the Iran war may be near an end, with a source saying a Pakistani mediator had made a breakthrough on "sticky issues", although Iran said the fate of its nuclear program had not been resolved.

Gold prices initially fell when the U.S. and Israel launched the war on Iran in late February, with liquidity pressures and inflation concerns as energy prices soared prompting markets to dial back expectations of interest rate cuts. As a zero-yielding asset, gold tends to lose appeal when interest rates are high.

Currently, traders see a 32% chance of a U.S. interest rate cut this year.

Data showed that new applications for U.S. unemployment benefits fell last week, suggesting labor market conditions remained stable, though employers are cautious about increasing headcount as the war with Iran casts a shadow over the economy.

Among other metals, spot silver fell 0.7% to $78.53 per ounce. The silver market is heading for a sixth year of structural deficit, with 762 million troy ounces drawn from stocks since 2021, raising the risk of a renewed liquidity squeeze despite weaker demand expectations, the Silver Institute and consultancy Metals Focus said on Wednesday.

Platinum lost 0.7% to $2,095.06 and palladium was down 0.7% at $1,578.06. (Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Emelia Sithole-Matarise and Nia Williams)