Gold climbed for a second straight session to $4,530 an ounce on Friday after reports that the US and Iran may extend their ceasefire.
However, prices remained on track for a 2% monthly decline, pressured by inflation concerns and expectations of prolonged higher interest rates.
Negotiations to end the three-month war continued, with reports of a tentative 60-day ceasefire extension to allow formal talks, though President Trump has yet to approve the agreement.
Despite potential progress, bullion faced headwinds as disruptions to shipping and energy infrastructure could keep oil prices elevated, maintaining a cautious stance from the Federal Reserve.
US inflation data this month showed the fastest rise in three years in April, reinforcing expectations that the Fed will keep rates unchanged well into 2027.
Elsewhere, gold demand in India stayed weak due to high prices and import duties, while premiums in top consumer China narrowed amid cautious market sentiment.
