- Trump to be briefed on military options against Iran, says report
- Fed leaves rate steady on inflation concerns
- Personal Consumption Expenditures (PCE) data due at 1230 GMT
April 30 (Reuters) - Gold prices jumped on Thursday as the dollar eased and oil prices ticked lower, with some analysts also pointing to an uptick in safe-haven demand on growing tensions that the U.S.-Iran war could escalate.
Spot gold climbed 1.9% to $4,630.03 per ounce, as of 1017 GMT, after falling to its lowest since March 31 in the last session. Bullion was down about 0.9% so far this month.
U.S. gold futures for June delivery rose 1.8% to $4,642.90.
The dollar eased 0.3%, making greenback-priced bullion more affordable for holders of other currencies.
"Certainly some sense of uncertainty in the Middle East is fueling something of a recovery in gold. From the strength of the recovery at the moment, there was also some suggestion that the price seems to have found for now a temporary floor," said independent analyst Ross Norman.
U.S. President Donald Trump is slated to receive a briefing on Thursday on plans for a series of military strikes on Iran, according to an Axios report. Brent prices hit four-year highs on concerns of escalation, before reversing course to turn negative.
Gold has so far fallen about 12% since the conflict began. Although the metal is viewed as a safe-haven during times of uncertainty, rising energy prices have stoked fears of inflation and the prospect of higher interest rates, which would weigh on the non-yielding metal.
Some analysts, however, say safe-haven demand could be picking up.
"Gold is behaving a bit more like we should expect it to behave. It should be rising in times of geopolitical risks, and clearly that geopolitical risk is that there's speculation that the U.S. is getting ready for the next level of escalation," said Nitesh Shah, commodity strategist at WisdomTree.
Meanwhile, the U.S. Federal Reserve Chair Jerome Powell closed out eight years on Wednesday with interest rates on hold. Markets are now looking out for Personal Consumption Expenditures (PCE) data for March, due at 1230 GMT, for more cues on U.S. monetary policy.
Spot silver rose 3% to $73.60 per ounce, platinum gained 3.3% to $1,941.45, and palladium was up 1.3% at $1,476. All three metals were on track for a second straight monthly fall.
Reporting by Pablo Sinha in Bengaluru; Editing by Shailesh Kuber
Source: Reuters