Gold held steady on Friday, setting the stage for a fourth straight weekly gain, as hopes for a possible U.S.-Iran peace deal eased worries about increasing inflation and persistently high U.S. interest rates. Spot gold was up 0.1% at 4,794.47 per ounce, as of 0053. The metal has increased by about 1% so far this week. U.S. gold futures for June delivery rose by 0.2% to $4,816.40. A 10-day ceasefire between Lebanon and Israel began on Thursday, with U.S. President Donald Trump suggesting that the upcoming meeting between the United States and Iran could take place over the weekend, raising hopes for a possible resolution to the Iran conflict.

Gold prices have fallen over 8% since the start of the Iran conflict in late February, influenced by concerns that increasing energy costs could lead to inflationary pressures and maintain high global interest rates. Recent data shows a decrease in new applications for U.S. unemployment benefits last week, suggesting that labor market conditions remain stable. Employers are showing restraint in their hiring practices because of the economic uncertainties arising from the situation with Iran.

Federal Reserve Governor Stephen Miran, a strong advocate for quick interest rate cuts, suggested on Thursday that he might rethink the pace of rate reductions, given that inflation is proving to be more persistent than expected. Meanwhile, U.S. Democratic Senator Elizabeth Warren voiced her opinion that the shortcomings in Fed chair nominee Kevin Warsh’s financial disclosures do not align with Senate ethics standards, reinforcing the necessity to delay his confirmation hearing set for Tuesday.

SPDR Gold Trust, known as the largest gold-backed exchange-traded fund in the world, announced a 0.2% rise in its holdings, totaling 958.65 metric tons on Wednesday. Spot silver rose by 0.5% to $78.76 per ounce, platinum increased by 0.3% to $2,091.45, and palladium also gained 0.3% to $1,555.