April 24 (Reuters) - Gold held steady on Friday, but was

on track for a weekly drop as elevated oil prices fuelled fears

of inflation and higher-for-longer interest rates amid stalled

U.S.-Iran peace talks.

FUNDAMENTALS

* Spot gold was up 0.1% at $4,697 per ounce, as of

0105 GMT. The metal is down 2.6% so far this week after a

four-week winning run.

* U.S. gold futures for June delivery fell 0.2% to

$4,712.50.

* Brent crude prices have risen over 18% so far this week to

hover above $105 a barrel, as the key Strait of Hormuz remained

largely closed despite an extension to the ceasefire.

* Lebanon and Israel extended their ceasefire for three

weeks after a high-level meeting at the White House, U.S.

President Donald Trump said on Thursday.

* Trump told reporters that he believed Tehran wanted to

make a deal but that its leadership was in turmoil. He said he

was in no hurry for a deal, but if Iran did not want one, "I'll

finish it up militarily."

* The global economy is facing ever more tangible strains

from the energy shock triggered by the Iran war as factories

grapple with soaring production costs and activity weakens even

in services sectors, major surveys showed on Thursday.

* CME Group ( CME ) on Thursday cut the initial margin on

its COMEX 100 gold futures to 6% from 7% and lowered the initial

margin on its COMEX 5,000 silver futures to 11% from 14%.

* On the data front, the number of Americans filing claims

for unemployment benefits increased slightly last week, pointing

to continued labour market stability in April, though economic

uncertainty and higher prices stemming from the Iran war pose

downside risks.

* Spot silver fell 0.1% to $75.36 per ounce, platinum

lost 0.5% to $1,996.13, while palladium was steady

at $1,468.50.

DATA/EVENTS (GMT)

0600 UK Retail Sales MM, YY Mar

0600 UK Retail Sales Ex-Fuel MM Mar

0800 Germany Ifo Business Climate, Curr Conditions New

Apr

1400 US U Mich Sentiment Final Apr

(Reporting by Noel John; Editing by Subhranshu Sahu)