Spot gold was down 0.1% at $4,759.54 per ounce

Gold dropped on Friday as a firmer ​dollar and U.S.-Iran ceasefire uncertainty weighed, but the metal stayed on course for a ‌third straight weekly climb as investors priced in earlier and deeper U.S. rate cuts, supporting non-yielding bullion.

Spot gold was down 0.1% at $4,759.54 per ounce by 0316 GMT. The metal, however, has gained 1.8% so far this week. U.S. ​gold futures for June delivery dropped 0.7% to $4,782.70.

The dollar index strengthened, making dollar-priced bullion more ​expensive for holders of other currencies.

There’s a lack of clarity about the way ⁠that the ceasefire is evolving in the Middle East and what that means to energy markets. ​So, we’re in sort of a little bit of a holding pattern with gold going into the ​final session of the week, said Kyle Rodda, senior financial market analyst at Capital.com.

Spot gold has dropped nearly 10% since the U.S.-Israel war with Iran erupted on February 28, with higher energy prices fuelling inflation concerns and the ​prospect of higher interest rates.

The fragile two-week ceasefire between Iran and the U.S. showed further strain ​on Friday, as Washington accused Tehran of breaching promises on the Strait of Hormuz.

Brent crude, however, has slipped more ‌than 11% ⁠this week on optimism that the ceasefire could reopen the Strait of Hormuz, through which around 20% of the world’s oil and liquefied natural gas passes.

If things break down, gold could end up back in mid-$4,000’s pretty quickly. But if the ceasefire holds and the peace deal starts to look ​more likely, then we ​could push through $5,000, Rodda ⁠added.