Gold dropped to a two-week low on Thursday, pressured by signals of softening trade tensions and a holiday in top consumer China, while focus was also on Friday's U.S. payrolls report to gauge the economic outlook.

Gold was set for its first back-to-back weekly loss this year, as risk appetite returned to Wall Street on strong tech earnings and traders curbed their bets on US interest-rate cuts this year after factory activity data.

Gold prices slid to a two-week low Thursday as optimism around U.S. trade negotiations dampened demand for the precious metal, which investors often turn to in times of uncertainty. The decline came after White House economic adviser Kevin Hassett signaled progress in tariff discussions,