PRECIOUS-Gold steady as markets await US-Iran nuclear talks outcome

By Anmol Choubey

Feb 26 (Reuters) - Gold prices were little changed on Thursday as investors stayed on the sidelines ahead of the third round of indirect U.S.-Iran nuclear talks in Geneva, hoping for signals on whether the negotiations could ease geopolitical tensions.

Spot gold XAU= was up 0.2% at $5,181.29 per ounce at 11:23 a.m. ET (1423 GMT). U.S. gold futures GCcv1 for April delivery were down 0.5% at $5,198.20.

"Gold and silver are attempting to break above resistance levels at $5,200 and $90 but have failed to sustain gains so far this week, raising drawdown risks should a near-term geopolitical deal materialize," Razan Hilal, market analyst at FOREX.com, said in a note.

The United States and Iran could reach a framework for a deal if Washington separates "nuclear and non-nuclear issues", a senior Iranian official told Reuters, adding that remaining gaps need to be narrowed during a third round of talks in Geneva.

"There's a lot of interest in how this third round of talks is going to play out. But regardless of that I think there's enough uncertainty out there right now," said Peter Grant, vice president and senior metals strategist at Zaner Metals.

Non-yielding gold is seen as a safe store of value during times of geopolitical and economic uncertainty.

Grant said he still expects the market to climb toward $5,340.72 and then $5,400, even though some short‑term pullbacks are possible.

The U.S. tariff rate for some countries will rise to 15% or higher from the newly imposed 10%, U.S. Trade Representative Jamieson Greer said on Wednesday, without naming any specific trading partners or giving further details.

Meanwhile, the number of Americans filing new applications for jobless benefits increased marginally last week and the unemployment rate appeared to hold steady in February amid a stable labor market.

The market continued to expect two rate cuts this year by the U.S. Federal Reserve. FEDWATCH

Spot silver XAG= fell 2.4% to $87.25 per ounce. Spot platinum XPT= slid 1.5% to $2,252.28 per ounce, while palladium XPD= also shed 2.1% to $1,757.75.