Gold prices ticked down on Friday as the dollar held firm, although persistent economic fears and the US debt ceiling standoff cushioned bullion’s further decline.

Spot gold fell 0.3% to $2,010.29 per ounce by 0301 GMT and was down 0.3% for the week. US gold futures shed 0.3% to $2,015.00.

While investors are looking at uncertainties surrounding the debt talks and expecting a pause in rate hikes by the Federal Reserve, there seems to be bit of profit-taking that’s pushing prices down, said Brian Lan, managing director at dealer GoldSilver Central.

Gold rose on Thursday after data showed a jump in weekly jobless claims and the smallest annual increase in producer prices last month in over two years, but the metal lost its allure as the US dollar gained upper hand, making bullion more expensive for overseas buyers.

Meanwhile a debt limit meeting between US President Joe Biden and top lawmakers that had been scheduled for Friday has been postponed, and the leaders agreed to meet early next week, a White House spokesperson said on Thursday.

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Safe-haven bullion tends to gain during times of economic or financial uncertainty, while lower rates also lift the appeal of the zero-yield asset.

Markets have basically priced in the idea that the Fed is probably done hiking at this point, but traders are still looking for clear indications on the rate trajectory, said Ilya Spivak, head of global macro at Tastylive.

Concerns about recession, and whether the banking crisis might produce more failures, however, will be supportive for gold in the near-term, Spivak added.

Markets are currently pricing in an 92.8% chance of the US central bank holding rates at its current level in June.

Elsewhere, spot silver fell 0.8% to $23.98 per ounce, platinum dropped 1% to $1,083.24. Palladium rose 0.5% to $1,558.50.