2019.10.1106:24:00UTC+00Gold Subdued In Lackluster Trade

Gold prices were flat to slightly lower on Friday as investors watched the latest developments on the Brexit situation and the U.S.-China trade talks.

Spot gold was virtually unchanged at $1,493.90 per ounce, while U.S. gold futures were down 0.2 percent at $1,497.55 per ounce.

There is some positive news flow on the front. U.S. President Donald Trump hinted at progress in his high-stakes trade battle with China while Chinese news agency Xinhua reported that Beijing was willing to reach an agreement to avoid further escalation.

Chinese Vice Premier Liu He told Chinese state-run media Xinhua the Chinese delegation has come to the talks with "great sincerity and is willing to make serious exchanges with the U.S. on issues of common concern", raising hopes that the two countries would reach a deal to end their protracted trade war.

Investors are pinning hopes that top-level U.S.-China trade talks would yield at least a partial deal, with some sort of agreements on aspects such as currencies and copyright protections.

Meanwhile, as Brexit hopes build, U.K. Brexit secretary Stephen Barclay and EU chief Brexit negotiator Michel Barnier are likely to give a press conference shortly.

The British pound hit a three-week high after European Council president Donald Tusk said he had received 'promising signs' from Ireland about Brexit.