Gold prices stabilized on Friday, supported by continued demand for safe havens fueled by tensions in the Middle East, while investors awaited the Federal Reserve’s monetary policy meeting, scheduled for next week.
The US Department of Commerce's Bureau of Economic Analysis reported on Friday that consumer spending, which represents more than two-thirds of US economic activity, rose by 0.7 percent last month.
August data was not revised and still showed a 0.4 percent increase in spending.
Economists polled by Reuters had expected spending to increase by 0.5 percent.
The report showed that American consumer spending accelerated sharply, contributing to the economy growing at the fastest pace in nearly two years.
Tai Wong, an independent metals trader based in New York, said: Gold is consolidating in a very narrow range, maintaining almost all of its recent gains, as the market is still very concerned about the escalation in the Middle East.
The yellow metal, which is considered a safe haven, has gained about eight percent, or more than $140, since the war began on October 7.
The US Federal Reserve is scheduled to meet on October 31 and November 1, with traders expecting that the Reserve will leave interest rates unchanged.
Price movements
By 14:00 GMT, gold fell in spot trading 0.09 percent to $1,983.24 per ounce, while US gold futures contracts fell 0.26 percent to $1,992.65.
As for other precious metals, silver fell 0.1 percent in spot trading to $22.81 per ounce, platinum rose 0.4 percent to $903.95, and palladium rose 0.4 percent to $1,137.62.
