Gold prices edged lower in Asian trading on Friday but were headed for a modest weekly gain as markets anticipated new ceasefire talks between the US and Iran.
Soft US inflation data also supported the precious metal, as did a weaker dollar. However, the US currency recovered slightly on Friday, putting pressure on metal prices.
Spot gold fell 0.2% to $4,782.34 per ounce, while gold futures were down 0.1% to $4,803.29 per ounce by 1:16 a.m.
Spot prices were up about 0.9% for the week, having earlier advanced on growing hopes for new peace talks between the US and Iran. US President Donald Trump noted improved relations with the country and expressed optimism about new talks before their ceasefire agreement expires next week.
Markets were also encouraged by the US brokering a 10-day ceasefire agreement between Israel and Lebanon.
However, gold's gains were capped by lingering caution about the inflationary impact of the war with Iran, especially as oil prices remained elevated due to the prospect of continued disruptions to shipping in the Strait of Hormuz.
Spot prices remained within the $4,700-$4,900 per ounce trading range established over the past week, with few signs of a breakout.
Other precious metals outperformed gold this week. Spot silver fell 0.4% to $78.3065 per ounce on Friday, while spot platinum fell 0.4% to $2,083.15 per ounce. Both metals are up more than 3% for the week.
