April 22 (Reuters) - Gold prices rose 1% on Wednesday as easing market stress reduced liquidation pressure on the metal and weighed on the dollar after U.S. President Donald Trump extended the ceasefire with Iran, giving a boost to riskier assets.
Spot gold was up 0.9% at $4,751.57 per ounce by 1153 GMT. U.S. gold futures for June delivery gained 1.1% to $4,770.10.
"Gold seems to be rallying with pretty much all the risk assets right now," said Nitesh Shah, commodity strategist at WisdomTree. "When other assets come under pressure, gold has been liquidated, and when that liquidation pressure eases, gold has now got a chance to rise."
Stocks gained and the dollar eased, while oil prices hovered just below $100 a barrel as the Strait of Hormuz remained closed.
Trump said he would indefinitely extend the ceasefire with Iran to allow for further peace talks, although it was not clear on Wednesday if Iran or Israel, the United States' ally in the two-month-old war, would agree.
Meanwhile, Iran seized two ships in the Strait of Hormuz on Wednesday, tightening its grip on the strategic waterway after Trump said the U.S. would maintain its blockade of the country.
Higher energy prices can push inflation higher. While gold is traditionally considered a hedge against inflation, high interest rates make yield-bearing assets more attractive, weighing on bullion's appeal.
Federal Reserve chief nominee Kevin Warsh said on Tuesday he had made no promises to Trump about cutting interest rates, as he tried to assure U.S. senators considering his confirmation that he would act independently of the White House while pursuing broad reforms.
"We continue to look for more Fed rate cuts over the next 12 months ... we retain our constructive outlook for gold, with a year-end target of $5,900/oz, driven by lower interest rates and a weaker U.S. dollar," said UBS analyst Giovanni Staunovo.
Spot silver rose 1.8% to $78.10 per ounce, platinum gained 1.8% to $2,073.46, and palladium was up 1.9% at $1,561.95.
Reporting by Pablo Sinha in Bengaluru; Editing by Kirsten Donovan and Joe Bavier
