While investors anticipated additional indications on U.S. monetary policy from nonfarm payrolls data due later in the day, gold prices barely changed on Friday, stabilizing near three-week highs. Copper prices increased on strong Chinese manufacturing data.

Spot gold muted at $1,940.14 per ounce, meanwhile gold futures held steady at $1,966.55 per ounce.

This week saw a sharp rise in the price of gold as the dollar suffered from a succession of dismal U.S. economic indicators that led to speculation that the Federal Reserve would leave interest rates on hold in September.

However, the dollar recovered on Thursday as a result of data showing that, while personal spending increased more than anticipated in July, personal consumption expenditures, the Fed's preferred inflation index, remained stable. Gold's weekly gains were consolidated as a result.

Now all eyes are on the nonfarm payrolls report for August, which is due later today. Given that payrolls have repeatedly exceeded estimates thus far this year, investors are still on edge even if it is predicted that the reading will have declined from the previous month.