Gold held largely steady and was on track for a fourth straight weekly gain, as hopes for a US-Iran peace deal eased fears of higher inflation and elevated interest rates, reports Reuters.

Spot gold rose 0.2per cent to $4,797.49 per ounce by 0435 GMT and was up 1.1pc so far this week.

US gold futures for June climbed 0.2pc to $4,818.80.

While gold is considered an inflation hedge, higher interest rates crimp demand for the non-yielding asset.

“While we expect further downside pressure (on gold) as the year progresses, ongoing geopolitical risks are likely to keep prices supported above a firm floor of $3,500/oz, underpinned by gold’s safe-haven characteristics,” BMI, a unit of FitchSolutions, said in a note.