Gold prices experienced a slight decline on Friday but are poised for a third consecutive weekly gain, reflecting a 1.8% increase this week. Spot gold was down 0.2% at $4,755.84 per ounce, while U.S. gold futures for June delivery fell 0.8% to $4,779.20. The recent optimism surrounding a ceasefire in the U.S.-Iran conflict, announced by U.S. President Donald Trump, has alleviated inflation fears and tempered expectations for further interest rate hikes by the Federal Reserve. The dollar index's strength has made gold more expensive for foreign investors, contributing to short-term price pressures. However, easing geopolitical tensions, particularly regarding the Strait of Hormuz's reopening, have provided support for gold prices. Investors are closely watching upcoming U.S. inflation data, with markets pricing in a 31% chance of a rate cut at the Federal Reserve's December meeting. Additionally, the SPDR Gold Trust reported a 0.14% decline in its holdings, totaling 1,057.96 tonnes.