Spot gold XAU= was little changed at $4,056.59 per ounce by 0046 GMT. U.S. gold futures GCcv1 for August delivery rose 0.3% to $4,062.50.
Oil prices extended gains to a fourth session as the U.S. struck Iran's coastal defenses and missile sites after reimposing a naval blockade of its ports, while Iran threatened to shut off more regional energy exports, saying it was engaged in an "existential war" with America. O/R
U.S. producer prices unexpectedly fell in June, posting their biggest decline in 14 months amid a pullback in the cost of energy products, further evidence that inflation was subsiding before the recent escalation in the Middle East conflict.
Fed Chairman Kevin Warsh this week declared his determination to bring inflation down without hinting at how, even as colleagues publicly laid out their own views on the economic outlook and interest rates.
Fed Governor Lisa Cook said on Wednesday she is "prepared to act" if inflation does not soon begin to slow.
While inflation is "unquestionably too high," there are reasons to believe it may have crested and should soon start subsiding, New York Fed President John Williams said.
China's economy expanded at its slowest pace in more than three years in the second quarter.
Fury Gold Mines FURY.TO said on Wednesday it had temporarily suspended exploration and drilling at its Eau Claire project in northern Quebec after evacuating all personnel due to a nearby forest fire.
Elsewhere, spot silver XAG= fell 0.3% to $57.61 per ounce. Platinum XPT= eased 0.3% to $1,668.43 and palladium XPD= edged 0.3% lower to $1,310.36.
Gold holds steady as inflation data and Middle East tensions offset
July 16 (Reuters) - Gold prices held steady on Thursday as recent U.S. data showed inflationary pressures easing before a fresh escalation in the Middle East war drove oil prices higher, reviving concerns over elevated energy costs and potential interest rate hikes.
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