Gold jumps on weaker dollar, Middle East peace hopes

Gold prices rose more than 1% on Wednesday, buoyed by a weaker dollar, while lower oil prices eased inflation fears on hopes of a peace deal between the U.S. and Iran.

FUNDAMENTALS

* Spot gold was up 1.3% at $4,617.19 per ounce, as of 0100 GMT. U.S. gold futures for June delivery rose ‌1.4% to $4,631.30.

* ⁠U.S. President ⁠Donald Trump said on Tuesday he would briefly pause an operation to help escort ships through the Strait of Hormuz, citing progress toward a comprehensive agreement with Iran.

* U.S. Secretary of State Marco Rubio told reporters on Tuesday that "operation Epic Fury is concluded," adding that "we're not cheering for an additional situation to occur."

* The U.S. dollar ⁠and crude ‌oil prices eased after Trump paused the operation to see whether an agreement with Iran can be finalised and ⁠signed.

* Meanwhile, data showed the U.S. trade deficit widened in March as an artificial intelligence investment boom pulled in imports, more than offsetting an increase in exports, which were partly boosted by petroleum shipments amid the Middle East conflict.

* The release of the U.S. employment report later this week will serve as a test of whether the economy remains resilient enough to ‌keep the Federal Reserve's monetary policy on hold, or whether a softening labor market could revive the case for interest rate cuts that the ⁠war with Iran has all but buried.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings remained steady at 1,040.66 metric tons on Monday.

* Spot silver rose 2.4% to $74.60 per ounce, platinum gained 1.3% to $1,977.25, and palladium was up 1.1% at $1,502.

DATA/EVENTS (GMT)

0755 Germany HCOB Services, Composite Final PMI Apr

0800 EU HCOB Services Final, Composite Final PMI Apr

0830 UK S&P Global PMI: Composite - Output Apr

0830 UK Reserve Assets Total Apr