FX.co ★ Gold Edges Lower But on Track for Weekly Gain

Gold prices fell to approximately $4,600 per ounce on Friday, continuing the minor declines observed on Thursday. This movement was influenced by a decrease in safe haven demand and dwindling expectations for an immediate interest rate reduction by the Federal Reserve. The geopolitical tension in Iran eased temporarily after President Donald Trump signaled a possible postponement of military action, following Iran's promise not to execute protesters. This sentiment was reinforced by reports that Israel and other Middle Eastern allies advised the US to delay any potential strikes on Iran. Additionally, robust US economic data released on Thursday prompted investors to reconsider their predictions for near-term interest rate cuts. Market sentiment now anticipates the Federal Reserve will maintain rates later this month, with the next fully anticipated rate cut moving from June to July. Despite the recent decline, gold has risen over 2% this week, marking its second consecutive weekly increase and keeping prices at near-record levels.