Gold prices pared gains on Friday as the dollar and Treasuries strengthened after data showed US manufacturing output and services activity picked up, limiting demand for the yellow metal. Spot gold was up 0.2% at $1,467.08 per ounce at 11:06 a.m. ET (1606 GMT). It had gained as much as 0.6% earlier in the day.
US gold futures also climbed 0.2% to $1,467.10 per ounce. US manufacturing output accelerated in November to its fastest pace in seven months and services activity also picked up more than expected, a survey of purchasing managers showed on Friday.
"Stronger data in the US just strengthens the interpretation that the Federal Reserve is going to stay on the pause here, for the next few meetings," said Ryan McKay, a commodity strategist at TD Securities.
"That means rates (Treasuries) and the dollar continue to move higher, which constrains gold." The US central bank, after cutting benchmark rates for the third time this year, had emphasised that it will keep interest rates on hold until the economy takes a downturn.
"Fear from the long drawn out trade war seems to be losing its sting as markets price in the possibility that no deal may be reached in the next few months," Silver Bullion sales manager Vincent Tie said.
The metal, considered as a safe asset during times of political and economic uncertainties, has jumped about 14% so far this year, which could be its best year in nine, mainly propelled by United States' trade war with China.
US President Donald Trump said that a trade deal with China is "potentially very close" and that he stands with both the people of Hong Kong, amid massive protests in the region, and Chinese President Xi Jinping.
Among other precious metals, silver slipped 0.1% to $17.07 per ounce, but was up for the week, while platinum fell 2.6% to $891.09, having slumped 3% earlier.
Palladium was up 0.3% to $1,766.36 per ounce, on track for its best week since mid-September.