April 2 (Reuters) - Gold prices climbed to a two-week

high on Thursday, supported by a weaker dollar and signs of

Middle East war de-escalation that may ease inflation pressures,

with markets awaiting comments from U.S. President Donald Trump.

FUNDAMENTALS

* Spot gold was up 0.7% at $4,790.29 per ounce by

0034 GMT, the highest level since March 19. U.S. gold futures

edged 0.1% higher to $4,816.10.

* Trump will address the nation in a televised speech at 9

p.m. EDT (0100 GMT) on Wednesday as his administration signals

it is moving toward a possible exit from the month-long war with

Iran.

* The United States will be "out of Iran pretty quickly" and

could return for "spot hits" if needed, Trump told Reuters on

Wednesday, hours before his scheduled address.

* The dollar index slipped for a third consecutive

session, hovering near one-week low level, and making

greenback-priced bullion more affordable for holders of other

currencies.

* The metal dropped 11% in March after the onset of the

conflict in Iran on February 28, which has driven oil prices

higher and added to inflation pressures, clouding the Fed's path

on monetary policy.

* Fed rate-cut expectations remain low through most of 2026,

with markets largely pricing in no change until a modest 27%

chance of a cut emerges at the December meeting.

* Despite gold's appeal during periods of inflation and

geopolitical tension, higher interest rates tend to curb

bullion's attractiveness by increasing the opportunity cost of

holding the non-yielding asset.

* St. Louis Federal Reserve President Alberto Musalem said

on Wednesday there is no need for the U.S. central bank to

change its interest rate stance right now in the face of rising

inflation risks.

* Holdings of the largest gold-backed exchange-traded-fund

(ETF), New York's SPDR Gold Trust, rose 0.35% on Wednesday

from Tuesday.

* Spot silver rose 0.7% to $75.62, platinum

gained 0.4% to $1,970.60 and palladium added 0.3% to

$1,476.75.

DATA/EVENTS (GMT)

1230 US International Trade $ February

1230 US Initial Jobless Clm March 28 w/e