Gold prices moved higher and were on track for a weekly gain as growing optimism surrounding a possible resolution to the US-Israel conflict involving Iran helped reduce worries about inflation and persistently high interest rates.

Spot gold climbed 0.5 percent to $4,709.89 per ounce by 15:51 GMT, bringing its gain for the week to 2.1 percent, The Caspian Post reports, citing Al Jazeera.

Meanwhile, US gold futures increased 0.2 percent to reach $4,719.60.

Gold is commonly regarded as a safe-haven asset during times of geopolitical uncertainty and global instability.

However, the metal tends to come under pressure when interest rates remain high because it does not provide any yield to investors.

“Gold is trading more like a risk asset than a traditional safe haven at the moment. The recovery in gold prices is linked to expectations of de-escalation involving Iran. As energy prices decline, markets are increasingly seeing the possibility of future rate cuts by the Federal Reserve,” said David Meger, director of metals trading at High Ridge Futures, referring to the US central bank.