Gold was broadly steady on Friday as a drop in U.S. Treasury yields eased the opportunity cost of holding bullion, while muted safe-haven demand kept prices in check as investors assess U.S-Iran negotiations.
Spot gold edged up 0.1% at $5,192.19 per ounce by 0543 GMT. The benchmark 10-year yield fell to a three-month low on the day.
"Ten-year U.S. Treasury yields after subtracting inflation, so the real yield, have plummeted and that actually is currently a supporting factor, allowing gold to hold steady regardless of the risk premiums ticking down yesterday after U.S.-Iran talks," said Kelvin Wong, a senior market analyst at OANDA.
Gold was set for its seventh straight month of gains, rising more than 6% in February, a month in which renewed U.S. tariff uncertainty and U.S.-Iran tensions boosted its safe-haven appeal.
The U.S. and Iran made progress in Geneva on Thursday over Tehran's nuclear programme, mediator Oman said, but hours of negotiation ended without a breakthrough to avert potential U.S. strikes amid a massive military buildup.
U.S. gold futures for April delivery were up 0.3% at $5,209.20.
The dollar was set to gain 0.6% for the month, as indications of a more hawkish Federal Reserve made dollar-priced gold more expensive for holders of other currencies.
Fed Chair nominee Kevin Warsh's path to out-of-the-gate interest rate cuts, in alignment with President Donald Trump's expectations, could be narrowing amid emerging bullishness about the U.S. economy.
The number of Americans filing new applications for jobless benefits increased slightly last week, but data showed that the unemployment rate appeared to hold steady in February in a stable labour market.
Markets currently expect at least three 25-basis-point Fed rate cuts this year, according to CME's FedWatch Tool.
Spot silver rose 1.6% to $89.73 per ounce, and was headed for a 6.1% gain on the month.
Spot platinum climbed 5.2% to $2,260.09 per ounce, a four-week high, while palladium gained 2.3% to $1,825.29. - Reuters
