Gold prices retreated in early Friday trading as investors trimmed positions ahead of this weekend's high-stakes U.S.-Iran diplomatic talks in Islamabad, even as the precious metal remained on course for its second consecutive weekly gain.

Tensions mount as Israel's continued strikes on Lebanon threaten to unravel the fragile two-week truce brokered by Pakistan

Two-Week Truce Lights the Fuse, Whether It Burns Is Another Question.

Gold entered Tuesday suspended between two equally powerful forces the threat of significant military escalation and the prospect that a resolution, if it comes, would strip the metal of its remaining war premium in hours. The result has been one of the most paralyzed sessions in months.

Gold entered the second quarter battered but far from broken. After suffering its steepest monthly decline since the 2008 financial crisis, the metal is attempting to reassert itself as the defining asset of a global economy caught between military conflict, trade war, and the early tremors of stagflation.

Gold prices plummeted nearly 4% to $4,600 per ounce on Thursday, snapping a four-day winning streak, as the US dollar and oil prices surged following President Donald Trump’s vow to intensify attacks on Iran.

Gold extends four-session winning streak; silver steadies above $75 as dollar retreats

The balance of power between the world's two dominant safe-haven asset classes is shifting once again — and this time, the reversal is as dramatic as it is swift.

Gold futures closed Monday at $4,540 per ounce, adding $50 — or 1.14% — on the session, capping a strong five-day run that has seen prices appreciate by 2.84%, or roughly $125, since last Tuesday.