The demand for safe-haven assets has weakened, and gold prices have fallen for the first time in three weeks.

According to Gate News bot, Bloomberg reports that gold prices have fallen for the first time in three weeks due to a decrease in safe-haven demand following the easing of geopolitical tensions in the Middle East, and the Federal Reserve's inflation warning has increased the likelihood of fewer interest rate cuts.

Gold prices held steady near $3,370 an ounce on Friday, down nearly 2% for the week. President Trump's spokesman said he would decide within two weeks whether to join Israel's attack on Iran, easing concerns that a regional war could threaten energy flows and spur inflation.

The chairman of The Federal Reserve (FED), Jerome Powell, pointed out earlier this week that the impact of Trump's tariff agenda will pose inflation risks, and tensions have since eased. This may increase the difficulty for the central bank to lower borrowing costs, which would be bearish for gold, as gold does not pay interest and performs better in a low-interest-rate environment.

Since the beginning of this year, gold prices have risen by about 30%, not far from the historical high of $3,500 per ounce reached in April. However, this week there are some signs that, given the high gold prices, investors are favoring silver and platinum as safe-haven assets.

Wall Street banks have mixed views on whether gold prices can extend their record rally. Goldman Sachs Group Inc. reiterated its forecast that gold will reach $4,000 an ounce next year, while Citigroup expects gold to fall below $3,000 in 2026.