Gold prices held steady near their largest advance since March following President Donald Trump's suggestion that the US could finalize a deal with Iran over the weekend. The precious metal extended gains as traders reacted to the prospect of de-escalation in a conflict that has disrupted global markets and pushed inflation higher.

Trump's weekend timeline for a potential agreement signals urgency in negotiations that have kept investors on edge for months. The conflict's impact on energy supply chains and commodity markets has fueled price pressures worldwide, making any diplomatic breakthrough a significant catalyst for risk assets.

Gold's rally reflects traditional safe-haven demand as uncertainty persists despite the optimistic rhetoric. The metal has benefited from central bank buying and investor hedging strategies throughout the ongoing tensions. Market participants are now positioning for a possible shift in monetary policy outlook if geopolitical risks recede.

The weekend deadline creates immediate trading pressure as investors balance optimism against the reality that Middle East conflicts rarely resolve quickly. Gold's performance will likely hinge on whether concrete details emerge rather than preliminary signals.