Gold steady as investors await clarity on US-Iran talks

April 27 (Reuters) – Gold prices held largely ‌steady, as investors stayed on the sidelines awaiting clarity on the stalled peace talks between the United States and Iran.

Spot gold was steady at $4,709.50 per ounce, as of 0553 GMT. Last week, ​the metal fell 2.5% to snap a four-week winning streak.

U.S. gold futures ​for June delivery fell 0.3% to $4,725.10.

“We’re just sort of watching now whether ⁠there’s progress in the (U.S.-Iran) talks at all in the coming days and that’s ​going to be the biggest driver for gold,” said Kyle Rodda, a senior financial ​market analyst at Capital.com.

Lending support to bullion, the dollar eased after a report said that Iran through Pakistani mediators gave the U.S. a new proposal on reopening the Strait of Hormuz and ending ​the war.

U.S. President Donald Trump said on Sunday that Iran could telephone if it ​wants to negotiate an end to their two-month war and stressed it can never have a nuclear ‌weapon.

Trump cancelled ⁠a trip by two U.S. envoys to Iran war mediator Pakistan on Saturday, dealing a setback to peace prospects.

Oil prices rose as the stalled talks prolonged the disruption of Middle East energy exports.

Higher crude oil prices can stoke inflation by raising transportation ​and production costs, increasing ​the likelihood of ⁠higher interest rates.

While gold is considered an inflation hedge, high interest rates make yield-bearing assets more attractive, weighing on its appeal.

Investors ​now await the U.S. Federal Reserve’s interest rate decision on ​Wednesday.

“It could ⁠either be a support to gold or an increased headwind, depending on if the Fed sort of indicates whether it sees itself potentially keeping policy unchanged for the rest ⁠of the ​year because of the inflationary impacts of the ​energy crisis,” said Rodda.

Spot silver fell 0.1% to $76.61 per ounce, platinum gained 0.2% to $2,015.63, and palladium was down ​0.6% at $1,487.73.