April 17 (Reuters) - Gold prices extended gains on Friday, supported by a weaker dollar and comments from Iran’s foreign minister that passage through the Strait of Hormuz remains open during the ceasefire, which pushed oil prices lower and eased some inflation concerns.
Spot gold was up 1.5% at $4,860.39 per ounce at 9:36 a.m. ET (1336 GMT), rising more than 2% so far this week.
U.S. gold futures rose 1.6% to $4,883.20.
The passage of vessels through the strait will be on the coordinated route as already announced by Ports and Maritime Organisation of Iran, Iran's foreign minister said in a post on X. U.S. President Donald Trump said he believed a deal to end the Iran war would come "soon", although the timing remains unclear.
"Reopening the strait was a key event, and with oil prices under pressure, it is expected to ease inflation concerns and revive expectations of interest rate cuts - all good news for gold," said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Gold prices could see short-term gains back above the $5,000 per ounce level, he added.
The U.S. dollar and oil prices extended their fall after the comments on Hormuz opening. A weaker U.S. currency makes bullion more attractive to holders of other currencies.
Spot gold prices slipped after the United States and Israel launched strikes on Iran in late February, with surging energy prices stoking inflation fears and leading markets to scale back expectations for interest rate cuts. Because gold does not yield interest, it typically becomes less attractive when borrowing costs are elevated.
Elsewhere, Indian banks have halted gold and silver orders from overseas suppliers, with tons of the metals stuck at customs as a formal government order has not been issued authorising imports, trade sources said.
Spot silver rose 4.6% to $81.99 per ounce, and was up 8% for the week.
Platinum was up 2.1% at $2,130.42, while palladium added 2.4% to $1,588.44. Both were on track for weekly gains.
Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Shailesh Kuber and Tasim Zahid
