Gold was largely unchanged on Friday and was on track for a fourth straight weekly gain, as hopes for a U.S.-Iran peace deal eased fears of higher inflation and elevated interest rates.
Spot gold was steady at $4,789.20 per ounce but up around 1% for the week. U.S. gold futures for June were steady at $4,811.50.
A 10-day ceasefire between Lebanon and Israel went into effect on Thursday and U.S. President Donald Trump said the next meeting between the United States and Iran may take place over the weekend.
The U.S. dollar firmed after hitting a six-week low the day before, but was headed for a second weekly drop. A weaker dollar makes greenback-denominated commodities more affordable for holders of other currencies.
While gold is considered an inflation hedge, higher interest rates compresses demand for the non-yielding asset.
Traders now see a 27% chance of a 25-basis-point Federal Reserve interest rate cut in December. Before the war, there were expectations of two reductions for this year.
