Gold prices inched higher on Friday but were on track for a weekly decline on signs of a resilient U.S. economy.
Spot gold rose 0.3 percent to $1,925.12 per ounce, while U.S. gold futures were up 0.3 percent at $1,948.85.
The dollar dipped slightly in subdued trade and bond yields dipped amid a relatively quiet day on the U.S. economic front.
Inflation and interest rate worries persist after data showed U.S. initial jobless claims fell to their lowest level since February, raising worries about sticky inflation and interest rates.
While the claims figures didn't change analysts' view for the Fed to keep policy steady at its meeting later this month, CME Group's FedWatch Tool currently indicates a 43.4 percent chance of another rate hike in November.
Earlier today, data showed Japan's economy grew less than initially estimated in the second quarter and wages slumped in July, stirring fresh concerns over slower global economic growth.
Elsewhere in Europe, German inflation slowed marginally in August as estimated but the rate remained elevated due to the increases in energy and food prices - according to final data from Destatis.
Separate data out of France revealed that French industrial output rebounded in July, increasing by 0.8 percent month-on-month following a 0.9 percent fall in June.
