Gold prices dipped for a third consecutive session on Friday, pressured by a stronger United States dollar and geopolitical tensions, though still poised for a weekly advance despite easing trade fears.
Spot gold was down $9.07, or 0.3%, to US$3,359.61 per ounce by 3:25 pm AEST (5:25 am GMT).
Markets turned cautious during Friday's Asian trading session amid the escalating military conflict between Thailand and Cambodia.
Cambodian Prime Minister Hun Manet reportedly called for an emergency meeting of the United Nations Security Council, according to China's Xinhua News, as the violence, focused on the disputed Emerald Triangle region, enters a second day.
The area, where the borders of Thailand, Cambodia, and Laos converge, contains several ancient temple sites and remains a longstanding point of contention between the neighbouring countries.
While the conflict has revived safe haven demand, investors are closely watching whether the skirmish could expand into a broader regional crisis.
Risk-off sentiment has offered modest support to gold, although a corresponding uptick in the U.S. dollar has limited its upward momentum.
The greenback’s recovery comes as markets brace for next week’s monetary policy decisions from both the U.S. Federal Reserve and the Bank of Japan.
Despite Friday’s pullback, gold remains positioned for a weekly gain, with broader market sentiment buoyed by signs of easing global trade tensions.
Progress on multiple trade fronts, including new U.S. deals with Japan, Indonesia, and the Philippines, along with movement toward an agreement with the European Union, has helped alleviate investor fears ahead of the 1 August tariff deadline.
Traders are also eyeing upcoming mid-tier U.S. economic data, including durable goods orders, which could further influence gold prices ahead of the weekend.
