Gold edged up on Friday after posting its biggest percentage fall in over two weeks the day before, and was set to post a small gain for a second week running amid tensions over Syria and a U.S.-China trade standoff.
Spot gold rose 0.2% to $1,337.17 U.S. an ounce early Friday and was set for a weekly gain of 0.3% U.S. gold futures fell 0.2% to $1,339.90 an ounce.
Gold prices dropped 1.3% on Thursday, the biggest one-day percentage fall since March 28, a day after bullion climbed to its highest in 11-weeks.
President Donald Trump and his national security aides on Thursday discussed U.S. options on Syria, where he has threatened missile strikes in response to a suspected poison gas attack, as a Russian envoy voiced fears of wider conflict between Washington and Moscow.
British Prime Minister Theresa May summoned her senior ministers to a special cabinet meeting on Thursday to discuss joining the United States and France in possible military action against Syria after a suspected poison gas attack on civilians.
China's commerce ministry said on Thursday trade negotiations with the United States would be impossible as Washington's attempts at dialogue were not sincere, and vowed to retaliate if U.S. President Donald Trump escalates current tensions.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.7% to 865.89 tonnes on Thursday.
Global silver physical demand dropped to its lowest level in five years during 2017, led largely by a steep decline in coin and bar demand, even as industrial demand increased, according to Thomson Reuters GFMS.
Moreover, South Africa's gold output dropped 7.1% year on year in February, monthly mining production data showed on Thursday.
