Adds comments, details and settlement price

By Anushree Mukherjee

June 11 (Reuters) - Gold prices rose 2% on Thursday, with U.S. President Donald Trump calling off planned military strikes on Iran easing fears of oil-driven inflation and elevated interest rates.

Spot gold XAU= jumped 2% to $4,153.71 per ounce at 2:00 p.m. ET (1800 GMT), after hitting its lowest point since late November earlier in the session.

U.S. gold futures GCcv1 for August delivery settled 0.5% lower at $4,114.

Trump said he has cancelled planned strikes against Iran on Thursday, hours after threatening more bombings and a desire to "take" oil export hub Kharg Island.

"Discussions and final points" on a potential deal have been approved by the US, Israel, Saudi Arabia, UAE, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan, Egypt and others, Trump added.

"We've seen headlines on a deal many times before and it hasn't come to fruition... But if it turns out to be real, then sure, it could help support gold off the lows," said Ryan McKay, commodity strategist at TD Securities.

Spot gold has been under pressure since the outbreak of the U.S.-Israeli war against Iran in late February, as rising oil prices fuel expectations of prolonged high interest rates. While gold is viewed as a hedge against inflation, higher interest rates tend to weigh on the metal.

Following Trump's decision to cancel the strikes, the probability of a December U.S. rate hike fell to 62% from 69%, according to the CME FedWatch tool. FEDWATCH

Meanwhile, data showed that U.S. weekly jobless claims rose to 229,000 for the week ended June 6, topping Reuters forecasts of 219,000.

U.S. producer prices increased more than expected in May, while data on Wednesday showed U.S. consumer inflation also increased at its fastest pace in three years during the month, boosted by surging prices for energy-related products.

Investors are awaiting next week's Fed meeting - Kevin Warsh's first as chair - where rates are expected to be held steady.

Spot silver XAG= rose 3.3% to $65.78 per ounce, platinum XPT= gained 2.6% to $1,708.38 and palladium XPD= climbed 4.4% to $1,267.50.