May 20 (Reuters) - Gold prices edged higher on
Wednesday, as optimism over a potential peace agreement between
the United States and Iran tempered concerns around inflation
and interest rates staying higher for longer.
FUNDAMENTALS
* Spot gold rose 0.4% to $4,499.69 per ounce by 0059
GMT. It had hit its lowest level since March 30 in the previous
session.
* U.S. gold futures for June delivery lost 0.2% to
$4,502.30.
* U.S. President Donald Trump said on Tuesday that the
United States may need to strike Iran again and that he had been
an hour away from ordering an attack before postponing it.
* U.S. Vice President JD Vance said the United States and
Iran have made a lot of progress in their talks and neither side
wants to see a resumption of the military campaign.
* The current level of interest rates is appropriate for the
moment, putting downward pressure on inflation at a time when
price pressures remain elevated, Philadelphia Federal Reserve
Bank President Anna Paulson said on Tuesday.
* She, however, said it was "healthy" that investors had
begun considering scenarios where rates might need to rise.
* The U.S. Federal Reserve will avoid cutting rates this
year, according to most economists polled by Reuters who largely
pushed long-held calls for reductions into next year on hopes
the current inflation flare-up is temporary.
* Investors are waiting for the minutes of the Fed's April
policy meeting, due later in the day, to gauge the central
bank's monetary policy outlook.
* Spot silver rose 1% to $74.55 per ounce, platinum
gained 0.2% to $1,926.70, and palladium rose 0.9%
to $1,365.50.
DATA/EVENTS (GMT)
0600 UK Core CPI YY Apr
0600 UK CPI YY Apr
0600 UK CPI Services MM, YY Apr
0900 EU HICP Final MM, YY Apr
(Reporting by Pablo Sinha in Bengaluru; Editing by Subhranshu
Sahu)
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