Investing.com-- Gold prices slipped to a near four-week low in Asian trade on Friday as a stable Israel-Iran ceasefire weakened safe-haven demand, while investors awaited the Fed’s preferred inflation gauge for clues on future interest rates.

Spot gold declined 1% to $3,293.79 an ounce, lowest since June 2. Gold Futures for August dropped 1.2% to $3,306.70/oz by 01:15 ET (05:15 GMT).

Bullion was on track to shed over 2% this week, marking its second consecutive weekly loss. It has fallen nearly 6% from its record high level touched in late April.

Israel-Iran truce holds, PCE inflation due later Friday

A ceasefire between Israel and Iran brokered by U.S. President Donald Trump appeared to hold through Thursday, easing geopolitical risk in the Middle East and curbing the appeal of gold.

Investor focus shifted to the release of the Personal Consumption Expenditures price index for May, the Federal Reserve’s preferred measure of inflation.

Markets are expecting a steady 0.1% monthly increase in both the headline and core PCE readings. On an annual basis, the measure is expected to rise 2.3%, while the core PCE is forecast to rise 2.6%, both above the prior year’s readings.

This comes after Fed Chair Jerome Powell appeared before Congress this week, where he expressed his caution against cutting interest rates too soon and warned that inflation caused by tariffs might prove more lasting than initially expected.

Trump sharply criticized Powell and said he has “three or four people” under consideration to replace him. A Wall Street Journal report stated that Trump could name Powell’s replacement as early as September.

Metal markets drop as dollar ticks up

The US Dollar Index edged up 0.1% in Asia hours, but remained near a three-year low.

A stronger dollar makes the commodity pricier for foreign buyers, thus reducing its demand.

Platinum Futures dropped 1.3% to $1,392.00 an ounce on Friday, pulling back from a more than decade-high. Despite the decline, the metal remains up 32% for the month.

Silver Futures fell 0.6% to $36.375 per ounce.

Meanwhile, benchmark Copper Futures on the London Metal Exchange edged 0.2% lower to $9,891.15 a ton, while U.S. Copper Futures were marginally higher at $5.06 a pound.