Gold on track for third straight monthly loss; traders assess US-Iran ceasefire reports

Gold was headed for a third straight monthly loss as the U.S.-Israeli war on Iran kept concerns around inflation and U.S. rate hikes elevated. Spot gold rose 0.5% to $4,514.19 per ounce by 0610 GMT on Friday as investors assessed reports on reports of an extension to the U.S.-Iran ceasefire extension. It had fallen to a two-month low of $4,365.76 on Thursday, but closed higher. The bullion is on track to lose 2.4% for the month and about 15% over three months. U.S. gold futures for August delivery inched 0.3% higher to $4,544.80. "Yesterday, we saw gold went down to $4,360 and was likely to go down further until the (ceasefire) announcement came, due to which we suddenly saw the reversal of prices. This is where the market continues to be this morning," said GoldSilver Central Managing Director Brian Lan. "Markets are now waiting for the deal to be signed even if it's only just pending Trump's signature." The United States and Iran reached an agreement on Thursday to extend their ceasefire and lift restrictions on shipping through the Strait of Hormuz, sources told Reuters, though U.S. President Donald Trump has yet to approve it and Iranian state media said it had not been finalised. Oil futures fell more than 1% on Friday and were on track for their steepest weekly decline since early April, easing some concerns around inflation driven by higher energy prices due to the Iran war. U.S. inflation increased at its fastest pace in three years in April, cementing economists' views that the Federal Reserve would hold interest rates unchanged well into next year. While gold is considered a hedge against inflation, the non-yielding asset tends to come under pressure in a high-interest-rate environment. Spot silver fell 0.1% to $75.55 per ounce and palladium gained 0.6% to $1,375.25, with both metals headed for a weekly gain. Platinum lost 0.4% to $1,915.30 and was on course for a weekly loss.