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Gold was steady after rising moderately the previous day, as traders assessed Middle East tensions following President Donald Trump’s comments that the US wouldn’t attack Iran before November midterm elections.

Gold prices eased on Friday and were set to post a weekly loss, pressured by a stronger dollar and growing expectations that the Federal Reserve (Fed) will keep interest rates elevated to contain inflation.

Gold prices have plunged 13% since the outbreak of war with Iran, betraying the yellow metal's reputation as a safe-haven asset.

Gold prices drifted higher on Thursday as so-called currency debasement fears lingered, while attention shifted to highly anticipated remarks from US Federal Reserve (Fed) Chair Kevin Warsh this week.

Gold hit an over two-month high on Thursday, as tame US consumer inflation undermined expectations of an imminent Federal Reserve rate hike.

Gold rallied more than 2% on Wednesday, climbing above the key $4,200-an-ounce level as growing optimism over an interim agreement to reopen the Strait of Hormuz eased inflation concerns, prompting investors to scale back expectations for further Federal Reserve rate hikes.

Gold prices trimmed losses ​on Wednesday after U.S. ​producer prices unexpectedly fell ​in June, although worries about inflation and elevated interest rates remained due to escalating tensions in the Middle East.

Gold prices edged into positive territory on Wednesday, reversing morning losses, after the precious metal closed its worst quarter in 13 years in three months to the end of June.

More and more central banks are storing gold bullion at home rather than overseas, as they expect to buy more of the safe-haven asset amid heightened geopolitical tensions.

Gold prices rose on Tuesday, supported by lower Treasury yields and a partial ceasefire between Hezbollah and Israel, while investors awaited details on the status of U.S.-Iran peace talks amid conflicting news.