May 1 (Reuters) - Gold held steady on Friday, but was on

course for a weekly decline as higher oil prices fuelled

inflation worries and clouded the interest rate outlook.

FUNDAMENTALS

* Spot gold was unchanged at $4,622.41 per ounce, as

of 0046 GMT, after rising more than 2% in the previous session.

The metal was on track for a weekly loss of 1.8%.

* U.S. gold futures for June delivery rose 0.1% to

$4,635.10.

* Iran said on Thursday it would respond with "long and

painful strikes" on U.S. positions if Washington renewed attacks

and restated its claim to the Strait of Hormuz, complicating

U.S. plans for a coalition to reopen the waterway.

* Brent oil rose to a four-year peak of over $126 a barrel

on Thursday before pulling back.

* The European Central Bank and the Bank of England kept

interest rates unchanged on Thursday, as expected, following

holds earlier in the week by the Federal Reserve and the Bank of

Japan.

* Global brokerages have gradually stepped back from earlier

expectations of two U.S. rate cuts in 2026, with forecasts now

split between some easing and none due to lingering inflation

risks and cautious policymakers.

* Data showed the U.S. Personal Consumption Expenditures

Price Index jumped 0.7% last month, the largest gain since June

2022. The increase was in line with economists' expectations.

* India's April gold imports are set to fall to a near

30-year low of around 15 metric tons, industry and government

sources said, because banks have been hit by an unexpected tax

demand.

* China's Central bank and customs authority said on

Thursday they would streamline gold import-export permit rules,

finalising a plan first proposed in September.

* Spot silver rose 0.8% to $74.34 per ounce, platinum

gained 0.1% to $1,987.55, and palladium was up

0.3% at $1,528.39.

DATA/EVENTS (GMT)

0600 UK Nationwide House Price MM, YY Apr

0830 UK S&P Global Manufacturing PMI Apr

1345 US S&P Global Mfg PMI Final Apr

1400 US ISM Manufacturing PMI Apr

(Reporting by Pablo Sinha in Bengaluru; Editing by Subhranshu

Sahu)