Gold prices were little changed on Friday as investors evaluated whether the Federal Reserve's would continue to cut rates, but the metal was set for a second weekly gain as the uncertainty surrounding a US-China trade deal boosted safe-haven appeal.
Spot gold was little changed at $1,512.54 per ounce at 0139 GMT, while US gold futures were also flat at $1,514.90 per ounce. Spot gold is set to rise 0.5 per cent this week after a 1 per cent gain the previous week.
Chile's decision to cancel the Nov. 16-17 Asia-Pacific Economic Cooperation summit disrupted plans for the United States and China to sign a interim trade deal, but US President Donald Trump said the two countries would soon announce a new site to sign a "Phase One" trade agreement.
A near 16-months long trade war between the two economies has slowed global trade, stirred recession fears for some economies and roiled financial markets.
The Federal Reserve on Wednesday lowered its policy rate by a quarter of a percentage point to a target range of 1.50 per cent to 1.75 per cent but signalled there would be no further reductions unless the economy takes a turn for the worse.
But a flattening yield curve indicates market participants believe the Federal Reserve may be pausing its interest rate cuts too soon.
The number of Americans filing applications for unemployment benefits rose slightly more than expected last week, pointing out to the concerns of an economic slowdown still existing.
The Institute for Supply Management is due to release data from its survey of purchasing managers on later in the day.
Asian shares fell on Friday on fresh concerns over US-China trade prospects and ahead of US economic data, while the dollar eased against major rivals.
The dollar index against a basket of six major currencies eased slightly to 97.296.
Holdings of the largest gold-backed exchange-traded-fund (ETF), New York's SPDR Gold Trust, fell 0.19 per cent on Wednesday from Tuesday.