PRECIOUS-Gold falls from one-month peak as investors look to US-Iran negotiations

By Ishaan Arora

April 15 (Reuters) - Gold eased from one-month highs on Wednesday, with investors gauging developments surrounding U.S.-Iran talks to bring hostilities in the Middle East to an end, as oil prices stayed firm on supply concerns from the Strait of Hormuz closure.

Spot gold XAU= was down 0.9% at $4,798.89 per ounce, as of 0941 GMT, after hitting its highest since March 18 earlier. U.S. gold futures GCcv1 for June delivery fell 0.6% to $4,821.30.

"To some extent it's some spurious correlation (given) the fact that both (equities and gold) react to oil price development. So low oil prices, good for economic growth, so good for equities. Low oil prices, low inflation, good for gold because central banks can cut rates," said UBS analyst Giovanni Staunovo.

World shares edged towards record highs after U.S. President Donald Trump said talks with Iran could resume over the next two days, with oil prices up over 1% as exports remain constrained by the closure of the Strait of Hormuz. MKTS/GLOBO/R

"I would say it's a wait-and-see mode, to get more clarity about what's happening next, because nothing is moving much at the moment," Staunovo added.

Trump said negotiations between U.S. and Iranian officials could resume in Pakistan in the next two days. This, even as, the U.S. said that its military had completely halted trade going in and out of Iran by sea.

Bullion has fallen close to 10% since the U.S. and Israel launched their war on Iran on February 28 sending oil prices soaring. Gold is often looked to as an inflation-hedge, but higher interest rates dampen the non-yielding asset's appeal.

Among other metals, spot silver XAG= fell 1.1% to $78.68 per ounce while platinum XPT= eased 0.2% to $2,099.42. Both metals rose to a one-month high earlier. Palladium XPD= was down 0.1% at $1,585.53.