Spot gold dropped 0.2% to $4,604.39 per ounce

Gold extended its losses on Friday after ‌stronger-than-expected U.S. economic data dampened expectations of the central bank cutting interest rates sooner and softening geopolitical frictions lowered safe-haven demand for the metal.

Spot gold dropped 0.2% to $4,604.39 per ounce by 0619 GMT. However, the metal is poised for a weekly gain of nearly 2% after scaling ‌a record high of $4,642.72 on Wednesday.

U.S. gold futures for February delivery edged 0.3% ​lower to $4,608.50.

The downward move in gold began predominantly when there was some lowering of the odds of some kind of intervention by the United States in the social unrest in ‍Iran and we’re seeing data come through from the U.S., it shows that there’s not an urgency to cut interest rates, said Kyle Rodda, an analyst at Capital.com.

The dollar was poised for a third weekly ⁠gain after data from the U.S. Labor Department showed weekly initial jobless claims dropped 9,000 ‍to a seasonally adjusted 198,000, below the 215,000 expected by a Reuters poll of economists.

A firmer U.S. currency makes ‌dollar-priced metals more expensive for other currency holders. Low-interest-rate environments generally favour non-yielding bullion.

Protests in Iran appeared to have abated since Monday while U.S. President Donald Trump also struck a softer tone regarding intervention ⁠against the country.

SPDR Gold ⁠Trust, the world’s ​largest gold-backed exchange-traded fund, said its holdings edged 0.05% higher to 1,074.80 tons on Thursday, its highest in over 3-1/2 years.

Spot silver declined 1.9% to $90.61 per ounce, although it was headed for a weekly gain of over ​13% after hitting an all-time high of $93.57 in the ‍previous session.