PRECIOUS-Gold steady as investors await Trump deadline on Strait of Hormuz

April 7 (Reuters) - Gold prices held steady on Tuesday, as investors remained cautious ahead of a deadline set by U.S. President Donald Trump on reopening the Strait of Hormuz, a key flashpoint in the Iran war.

FUNDAMENTALS

Spot gold XAU= was steady at $4,646.69 per ounce by 0100 GMT, while U.S. gold futures GCcv1 for June delivery fell 0.2% to $4,674.40.

Iran said on Monday it wanted a lasting end to its war with the U.S. and Israel, while resisting pressure to reopen the Strait of Hormuz, even as Trump warned the country could be "taken out" if a deal is not reached by Tuesday night.

The U.N. Security Council is expected to vote later in the day on a resolution aimed at protecting commercial shipping in the Strait of Hormuz, though the measure has been significantly watered-down after China, a veto-wielding member, opposed authorising the use of force.

Oil prices extended gains and held above $110 a barrel as Trump raised his rhetoric against Iran. O/R

Meanwhile, White House economic adviser Kevin Hassett told CNBC on Monday he believed a "supply shock" in the U.S. economy caused by capital spending and productivity gains from artificial intelligence would allow the Federal Reserve to cut interest rates.

In contrast, Cleveland Fed President Beth Hammack and Chicago Fed President Austan Goolsbee both see inflation as a far bigger problem than employment, underscoring their support for maintaining tighter monetary policy.

Markets widely see no chances of a Fed rate cut this year, per CME's FedWatch tool. FEDWATCH

Investors are also awaiting the minutes of the Fed's March policy meeting on Wednesday, while U.S. inflation indicators, including the Personal Consumption Expenditures (PCE) data on Thursday and the Consumer Price Index (CPI) on Friday, are expected to offer further direction.

Spot silver XAG= fell 0.9% to $72.11 per ounce, platinum XPT= shed 0.2% to $1,974.66 and palladium XPD= lost 0.6% to $1,476.27.