JOHANNESBURG, April 17 (Reuters) - The South African rand edged higher on Friday as the dollar stayed weak on optimism around a possible U.S.-Iran peace deal that could ease concerns over rising inflation and high interest rates.
o At 1235 GMT the rand traded at 16.3400 against the dollar, up 0.4% on Thursday's close, after trading flat in the early session.
o The currency was supported by a softer dollar, which was hovering near multi-week lows.
o Gold prices held broadly steady on Friday and were poised for a fourth straight weekly gain.
o Markets were still cautious as traders assessed whether progress in U.S.-Iran negotiations would be sustained, given their implications for oil prices, inflation and global risk appetite.
o "Markets are still sitting on the fence - the current two-week ceasefire is almost up, so traders are waiting to see what happens next," Wichard Cilliers, head of market risk at TreasuryONE, said in a research note.
o On the Johannesburg Stock Exchange, the Top-40 index was up 0.5%.
o South Africa's benchmark 2035 government bond was firmer, as the yield fell 5 basis points to 8.42%.
o Next week, domestically focused investors will look to the release of inflation and retail sales data.
(Reporting by Anathi Madubela and Nilutpal Timsina; Editing by Barbara Lewis and Andrew Heavens)
