Gold prices fell on Friday and were on track for a weekly loss, pressured by concerns around inflation and potential US Federal Reserve interest rate hikes.
Spot gold was down 0.7% at $4,183.19 per ounce, as of 0745 GMT, and was set for a weekly loss of 3.4%. US gold futures for August delivery rose 2.2% to $4,204.40.
Gold fell to a more than six-month low on Thursday before closing higher at $4,219.69, after US President Donald Trump called off planned military strikes on Iran and signaled an imminent peace deal. However, Iran countered that it had not reached a final decision on an agreement.
The price is "completely being driven by the geopolitical headlines," said Edward Meir, an analyst at Marex.
"The markets will be paying attention to any signal that the Fed could raise rates, and if they hint at moving in that direction, I think gold could probably break below the $4,000 mark."
Gold has lost about 20% since the Iran war began, on fears that rising energy costs could spur inflation, prompting central banks to keep interest rates higher and raising the opportunity cost of holding the non-yielding metal.
US producer prices increased more than expected in May, leading to the largest annual gain in 3-1/2 years as the conflict drove up the cost of energy products.
Traders are currently pricing in a 60% chance of a US rate hike in December, according to the CME Group's FedWatch tool.
Meanwhile, holdings of the largest gold-backed exchange-traded fund, New York's SPDR Gold Trust, fell about 0.3% to 923.89 metric tons on Wednesday. ANZ lowered its year-end price target for gold by $400 to $5,200 to reflect recent price volatility.
Spot silver fell 1.8% to $66.13 per ounce, and platinum lost 0.3% to $1,715.44, with both metals headed for a weekly loss. Palladium rose 1.6% to $1,289.75, and has gained about 5% for the week so far.
