Gold pares earlier losses on possible Lebanon-Israel ceasefire extension

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By Ishaan AroraGold pared some losses on Thursday on news of a potential Lebanon-Israel ceasefire extension and after Treasury yields retreated from session highs following U.S. weekly jobless claims data.Spot gold TVC:GOLD was down 0.3% at $4,722.02 per ounce, as of 11:52 a.m. EDT (1552 GMT), after falling 1% earlier in the day to as low as $4,683.84 per ounce. U.S. gold futures TVC:GOLD for June delivery fell 0.2% to $4,738.50."What provided bid was signs of a potential breakthrough in the Lebanon ceasefire earlier this morning. But that happened to coincide with the economic data release," said Daniel Ghali, commodity strategist at TD Securities.The U.S. is set to host a second meeting between Lebanese and Israeli envoys on Thursday, with Beirut seeking an extension of the ceasefire, a day after Israel killed at least five people including a journalist in airstrikes."Certainly yields and the data are playing a role, but all asset prices, including gold, are moving with headlines," Ghali said.Benchmark 10-year U.S. Treasury yields TVC:US10Y let go of most gains, after rising to an over one-week high earlier, decreasing the opportunity cost of holding non-yielding bullion.More Americans filed claims for unemployment benefits last week than anticipated. Initial claims for unemployment benefits rose by 6,000 to a seasonally adjusted 214,000 for the week ended April 18, up from Reuters' poll of 210,000.The has boosted oil prices, with Brent trading above $100 a barrel on Thursday as peace talks between the U.S. and Iran stalled and restrictions on trade through the Strait of Hormuz continued.Soaring energy prices tend to boost inflation, and as gold is seen as an inflation hedge this also results in higher chances of interest rate hikes dampening the non-yielding asset's appeal. Bullion has fallen more than 11% since the start of the U.S.-Israeli war on Iran on February 28.Spot silver BIST:XAGUSD1! fell 2.3% to $75.91 per ounce, while platinum NYMEX:PL1! lost 2.7% to $2,018.10, both having hit more than one-week lows earlier. Palladium BIST:XPDUSD1! was down 4.1% at $1,482.41, after touching a more than two-week low.

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