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Gold prices were on track for a third consecutive weekly fall, slipping more than 1% on Friday, as a stronger dollar and hawkish signals from the U.S. Federal Reserve weighed on the greenback-priced metal.
Spot gold was down 1.1% at $4,156.26 per ounce, as of 0715 GMT, its lowest level since June 11. The contract was down 1.4% so far this week.
U.S. gold futures for August delivery fell 1.7% to $4,173.30.
Markets in mainland China and Hong Kong were closed for the Dragon Boat Festival holiday, thinning market activity.
The dollar rose to a one-year high, making bullion more expensive for other currency holders.
"Gold's rally on the back of the U.S.-Iran peace deal proved short-lived. The resurgent dollar, powered by the Fed's newly hawkish tone under Kevin Warsh, has stolen the spotlight," said Tim Waterer, chief market analyst at KCM Trade.
"The new chairman's firm stance has effectively neutralised the geopolitical tailwind, reminding everyone that monetary policy still calls the shots."
Nine of the U.S. central bank's 19 policymakers believe they will need to raise the policy rate this year.
That would be in line with several global central banks either raising borrowing costs or signalling moves to tame Iran war-induced inflationary pressure.
Traders see an 87% chance of a U.S. rate hike in December, from 61% before the Fed decision, according to the CME FedWatch Tool.
Gold tends to lose appeal when rates are high, as it does not yield interest.
On the geopolitical front, planned U.S.-Iran talks in Switzerland were called off after Vice President JD Vance dropped plans to travel to the country, adding to uncertainty over a lasting truce.
On the physical front, gold demand was modest in India this week as prices fell to their lowest level in two-and-a-half months and remained volatile, while top consumer China flipped to a discount.
Spot silver fell 1.5% to $64.81 per ounce, platinum lost 0.8% to $1,681.53, and palladium shed 0.8% to $1,268.31. The metals were on track for weekly losses.
