Gold traded in the red on Friday and is preparing for a weekly decline amid easing tensions in the Middle East and market concerns over the continuation of high interest rates in the United States.
Despite a weaker dollar, the XAU/USD pair is down 0.21% at 2,298.77 over the past 24 hours, while June US gold futures are down 0.10% at $2,307.30.
The US Dollar Index (DXY), which tracks the greenback against a basket of global currencies, was down 0.14% at 105.19.
At its two-day meeting this week, the Federal Reserve left interest rates unchanged but signaled a possible cut this year despite steady inflation. Jerome Powell said after the meeting that the US central bank's next decision is likely to be a rate cut rather than a rate hike.
CME's FedWatch data showed that the market is currently pricing in a 49% chance of the Fed cutting rates by at least 25 basis points in September.
All investor attention is now focused on the upcoming Non-Farm Payrolls report, which will provide clues on the Fed's future monetary policy, according to RTT News.
At the same time, safe-haven demand for the precious metal is waning amid a generally optimistic market sentiment.
Asian and US stocks rose as investors' fears of a Fed rate hike eased.
US Secretary of State Tony Blinken, who is in the Middle East, expressed hope that the Palestinian group Hamas will agree to the Israeli authorities' proposal on the terms of a ceasefire and the release of Israeli hostages.
It should be noted that ceasefire talks in Gaza have been going on for several weeks. Mediators are trying to reach an agreement that will allow the suspension of hostilities in the Strip and the release of 133 hostages.
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