Gold: XAU Extends Losses.

Gold prices dropped around 1% toward $4,560 per ounce on Friday, extending the previous session’s losses as safe-haven demand cooled and expectations for near-term interest rate cuts by the Federal Reserve continued to fade. Geopolitical tensions surrounding Iran eased further after President Donald Trump reiterated that he may delay any military action, citing signs that the crackdown on protests was moderating and that large-scale executions would not proceed. At the same time, stronger US economic data reinforced the view that monetary policy will remain restrictive for longer, prompting investors to further scale back bets on an imminent Fed cut. Markets now broadly expect rates to remain unchanged later this month, with the next fully priced easing pushed deeper into mid-2026. Despite the pullback, gold remains near record levels and is still set for a weekly gain, underpinned by its strong run earlier in the week.