Gold rose for a third straight session on Thursday, ‌supported by a softer dollar as hopes grew for a potential peace deal between the United States and Iran.

Spot gold was up 0.3% at $4,701.19 per ounce, as of 0231 GMT, after ​rising about 3% on Wednesday to hit its highest level since April ​27. U.S. gold futures for June delivery rose 0.4% to $4,710.

Iran said ⁠on Wednesday it was reviewing a U.S. peace proposal that sources said would formally ​end the war while leaving unresolved the key U.S. demands that Iran suspend its ​nuclear programme and reopen the Strait of Hormuz.

"I think most markets overreacted as (the deal) is still a work in progress, and anything could unravel. Nevertheless, we saw enough dollar weakness to propel ​gold prices higher. Lower Treasury yields also boosted gold," said Edward Meir, an ​analyst at Marex.

Gold could remain rangebound in the near term, trading between $4,600 and $5,100 an ounce, he ‌said.

The ⁠dollar edged down 0.1%, making bullion less expensive for holders of other currencies.

Benchmark 10-year U.S. Treasury yields have eased 0.6% so far this week, lowering the opportunity cost of holding gold.

Brent crude oil prices are down about 6% so far this week as optimism grew about a possible end to the war in the Middle East.

Gold prices have fallen more than 10% since the war began in late ​February.

Elevated crude oil prices can stoke inflation, increasing the likelihood ​of higher ⁠interest rates. While gold is seen as an inflation hedge, high interest rates tend to weigh on the non-yielding asset.

Investors now await the monthly U.S. employment report on Friday to see ⁠if ​the U.S. economy remains resilient enough to keep the ​Federal Reserve's monetary policy on hold.

Spot silver rose 0.5% to $77.68 per ounce, platinum was steady at $2,060.18, and ​palladium was down 0.1% at $1,536.54.