Gold and silver prices stabilize

Gold prices held steady as investors assessed developments surrounding the conflict in the Middle East and interest-rate expectations ahead of the release of U.S. inflation data.

Spot gold was unchanged at $4,732.89 per ounce.

U.S. gold futures for June delivery rose 0.3 percent to $4,742.40.

Trump said the ceasefire with Iran was "on the verge of collapse," after Tehran’s response to a U.S. proposal to end the war made clear that the two sides remain far apart on a number of issues.

Ilya Spivak, head of global macro at Tastylive, said: "We have already seen a shift in the expectations of many central banks toward a more hawkish policy stance, and for the Federal Reserve, this has eliminated all chances of interest-rate cuts this year."

He added: "We are eagerly awaiting what the consumer price index figures may reveal, and whether they point to stronger inflation momentum than previously expected."

Meanwhile, oil prices rose at the start of Asian trading, while the dollar extended the gains it posted in the previous session.

Higher crude prices could worsen inflation, increasing the likelihood of interest-rate hikes. Although gold is considered a safe haven against inflation, higher interest rates weigh on the non-yielding asset.

Both Bank of America Global Research and Goldman Sachs lowered their forecasts for U.S. interest-rate cuts this year, citing rising inflation due to higher energy prices and a strong labor market.

Markets are also awaiting Trump’s two-day visit to China this week, during which he is scheduled to meet Xi to discuss a wide range of topics, including the current conflict in the Middle East.

As for other precious metals, spot silver was steady at $86.08 per ounce, while platinum fell 1.6 percent to $2,098.25 and palladium declined 1 percent to $1,494.