PRECIOUS-Gold extends rally, jumps over 2% as US-Iran tensions flare

By Ishaan Arora

Feb 4 (Reuters) - Gold prices extended gains on Wednesday on safe-haven appeal, as renewed geopolitical tensions between the U.S. and Iran added to the yellow metal's recent upswing that saw it mark its best day since 2008 in the previous session.

Spot gold XAU= gained 2.7% to $5,071.79 per ounce as of 0353 GMT, after surging 5.9% on Tuesday, its biggest daily gain since November 2008. Bullion scaled a record high of $5,594.82 last Thursday.

U.S. gold futures GCcv1 for April delivery climbed 3.2% to $5,092.0 per ounce.

"Gold has climbed back about the key $5,000 level, ... (as) geopolitical tensions have lifted the metal's safe-haven appeal after U.S. forces downed an Iranian drone," said Jigar Trivedi, a senior research analyst at IndusInd Securities.

The U.S. military on Tuesday shot down an Iranian drone that "aggressively" approached the Abraham Lincoln aircraft carrier in the Arabian Sea, the U.S. military said, in an incident first reported by Reuters.

Nuclear talks between the U.S. and Iran are expected to take place in Oman on Friday, Axios reporter Barak Ravid said on Tuesday, citing an Arab source.

Elsewhere, U.S. President Donald Trump on Tuesday signed a spending deal into law that ends a partial U.S. government shutdown which had delayed key labour data reports that were due for release this week.

"Going ahead (gold) prices may touch $5,100 in the very near-term ... and we are expecting the same $5,600 levels by the end of the first half or April-end while prices will continue to rise thereafter and our year-end target is $6,000/oz," Trivedi added.

The current wave is expected to be sharp, probably to surge into the $4,950 to $5,198 range, Reuters technical analyst Wang Tao said on Tuesday. TECH/C

Spot silver XAG= rose 3.2% to $87.84 an ounce. It touched a record high of $121.64 on Thursday.

Spot platinum XPT= added 2.9% to $2,273.70 per ounce after hitting an all-time high of $2,918.80 on January 26, while palladium XPD= gained 3% to $1,784.67.