Gold prices eased slightly on Friday after the potential for easing tensions with North Korea sapped safe-haven demand ahead of a U.S. labour market report that could support more increases to interest rates.
U.S. President Donald Trump said he was prepared to meet North Korea's Kim Jong Un in what would be the first face-to-face encounter between the countries' leaders and could mark a breakthrough in a standoff over the North's nuclear weapons.
The reaction has been muted because gold had failed to show strong safe-haven demand last year during months of insults exchanged over the North's nuclear and missile programmes, experts said.
Investors were waiting for the release of U.S. jobs data later on Friday.
Spot gold was down 0.2% at $1,319.85 U.S. an ounce early Friday morning in North America and on track for a third consecutive weekly decline.
U.S. gold futures for April delivery fell 0.1% to $1,320.40 U.S.
One expert expects gold to fall to $1,225 in three months. Spot gold could fall more into a range of $1,307-$1,312 U.S. after piercing support at $1,317, according to another analyst.
In other precious metals, silver slipped 0.3% to $16.45 U.S. an ounce, platinum eased by 0.1% to $951.30 and palladium was down 0.1% at $976.
