Gold prices edged higher on Friday following weak economic data out of Europe and a week of key central banks deciding to stand pat on interest rates, although a stronger dollar kept bullion gains in check.
Spot gold was up 0.3% at $1,925.50 per ounce, as of 1152 GMT, following three sessions of losses. U.S. gold futures rose 0.4% to $1,946.20.
France's dominant services sector contracted at an even sharper pace in September, a monthly survey showed, as falls in demand and new orders weighed on the euro zone's second-biggest economy.
"There is going to be a huge amount of emphasis now on the economic data, which is going be a massive driver now for the next six weeks in the run-up to the next (central bank) meetings," said Craig Erlam, senior markets analyst at OANDA.
This week central banks for the world's biggest economies signalled they would keep interest rates as high as needed to tame inflation, even as two years of global policy tightening reach a peak.
The prospects of higher-for-longer U.S. rates have lifted the dollar to a six-month peak, while benchmark 10-year Treasury yields traded near 16-year highs, keeping bullion gains in check.
Markets priced in a 45% chance of another rate hike by the U.S. Federal Reserve before 2024, while also seeing roughly a 41% chance of some easing in the first half of 2024, according to the CME FedWatch tool.
Investors traditionally buy gold as a hedge against economic uncertainty, but higher rates tend to weigh on non-interest-paying bullion.
"The markets looked at central banks and said you're not stopping hikes because inflation is beaten, you're stopping because you're worried that global growth is about to stop," said Ilya Spivak, head of global macro at Tastylive.
Silver gained 1.5% to $23.72 per ounce and was set for its best week in four.
Platinum added 1.6% to $934.18 and palladium rose 0.9% to $1,273.97.
(Reporting by Deep Vakil in Bengaluru; Editing by Emelia Sithole-Matarise and Sohini Goswami)