Gold held steady, but was on track for a weekly drop as elevated oil prices fuelled fears of inflation and higher-for-longer interest rates amid stalled US-Iran peace talks.

Spot gold was down 0.1 per cent at $4,686.29 per ounce, as of 0230 GMT. The metal is down 3pc so far this week after a four-week winning run.

US gold futures for June delivery fell 0.5pc to $4,702.

Brent crude prices have risen over 17pc so far this week to hover above $105 a barrel, as the key Strait of Hormuz remained largely closed despite an extension of the Iran ceasefire.