Gold rose on Friday and is on track for weekly gains as concerns about inflation and rising interest rates eased and investors remained optimistic about a possible deal between the United States and Iran, despite clashes in the Gulf region.
Spot gold rose 0.8% to $4,723.56 an ounce by 0614 GMT, and is up 2.4% so far this week.
US gold futures for June delivery gained 0.5% to $4,731.70.
The United States and Iran exchanged attacks on Thursday in the most serious test yet of the ceasefire that has been in place for about a month, but Iran said the situation had returned to normal, while the United States stressed that it did not want to escalate the situation.
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Kyle Rodda, a financial markets analyst at Capital.com, said: "The Trump administration's statements this morning, indicating that the ceasefire is still in place and that there is continued optimism about the possibility of reaching an agreement between the United States and Iran, are supporting the gold market at the moment."