Gold fell more than 1% to its lowest level in nearly a month on Friday due to easing geopolitical and trade tensions and as investors awaited US inflation data for clues on the future trajectory of interest rates.
Spot gold lost 1.4% to $3,282.68 per ounce by 1055 GMT, its lowest since late May.
Prices have fallen by over 2% this week and more than $200 from a record high scaled in April. US gold futures fell 1.6% to $3,294.50.
The Iran-Israel ceasefire, brokered earlier this week by US President Donald Trump, is holding for now.
A White House official said on Thursday that the US has reached an agreement with China on how to expedite rare earths shipments to the US July 9 is the deadline for Trump鈥檚 鈥渞eciprocal鈥 tariffs as nations rush to get an agreement.
鈥淭he loss of haven demand has meant that despite the latest leg down in the dollar, gold has not benefited from this at all,鈥 said Fawad Razaqzada, market analyst at City Index and FOREX.com.
鈥淎 bit of a pullback would not be too bad an outcome as that will allow long-term technical overbought conditions on higher time frames to work off, allowing the metal to shine again when macro conditions are more favourable once more.鈥
The immediate focus is the US Personal Consumption Expenditure data, an inflation gauge, scheduled for release at 1230 GMT. Fed Bank of Richmond President Thomas Barkin said tariffs are very likely to push inflation up over the coming months.
Gold slips on easing ME tensions, Fed rate cut uncertainty
Despite its reputation as a hedge against inflation and uncertainty, zero-yield bullion loses appeal in a high interest rate environment. Spot silver fell 1.8% to $35.96.
Platinum dropped 5.9% to $1,334.63, after hitting its highest since 2014.
Palladium fell 1.2% to $1,117.96.
The main reason for the price increase in platinum was likely to be the high discount to gold, which is apparently considered too expensive, said Commerzbank in a note.