Gold prices set for the second weekly rise on US-China trade deal uncertainties

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% this week after a 1% gain the previous week.

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Chile`s decision to cancel the Nov. 16-17 Asia-Pacific Economic Cooperation summit disrupted plans for the United States and China to sign an interim trade deal, but U.S. 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 U.S. Federal Reserve on Wednesday lowered its policy rate by a quarter of a percentage point to a target range of 1.50% to 1.75% 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 US 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.