As stubborn U.S. inflation data caused investors to reevaluate their expectations for rate reduction from the Federal Reserve, gold prices stabilized on Friday after reversing all of this week's gains.

Spot gold inched up a bit at $2,016.97 per ounce, meanwhile gold futures

Edged up to $2,022.05 per ounce. After abruptly reversing course on Thursday, both were currently trading flat for the week.

As concerns about a global economic downturn this year deepen, a succession of dismal economic reports from the U.S. and China sparked sharp declines in copper and other base metals.

As the economy continued to deteriorate, safe haven demand for the yellow metal remained comparatively robust, keeping gold locked above the $2,000 per ounce threshold. A new support level for gold prices at $2,000 an ounce appears to have emerged as worries about a U.S. banking crisis also encouraged investors to place money in the yellow metal.

However, gold experienced significant losses in the previous session as markets reduced their expectations for any interest rate cuts by the Federal Reserve this year as a result of persistent U.S. producer price index (PPI) inflation data.