* Gold up 2.2% this week
* President Trump "not incapacitated" - White House
* U.S. job growth slowed more than expected in September
* Interactive graphic tracking global spread of coronavirus: https://graphics.reuters.com/world-coronavirus-tracker-and-maps/ (Updates prices)
By Sumita Layek
Oct 2 (Reuters) - Gold clung to the $1,900 level in choppy trading on Friday, with gains capped by a firm dollar, but bullion remained headed for its biggest weekly rise in eight weeks as U.S. President Donald Trump's COVID-19 positive test hurt risk sentiment.
Spot gold XAU= eased 0.2% to $1,900.40 an ounce by 1:42 p.m. EDT (1742 GMT). Prices were set to rise 2.2% this week, heading for the biggest weekly percentage rise since early August.
U.S. gold futures GCv1 settled down 0.5% at $1,907.60.
"The election is 33 days away, there's so much unknown -- will it be a mild case, how will he react to it? So we have flight to safety keeping gold afloat," said Bob Haberkorn, senior market strategist at RJO Futures.
"Traders seem cautious because they're concerned about equity markets selling off." .N
Gold had risen to an over one-week high after Trump said in a tweet that he and his wife Melania had tested positive for the coronavirus, hammering Wall Street. the White House reassured Americans that the President was "not incapacitated". also took stock of the last monthly employment report before the Nov. 3 presidential election, which showed U.S. job growth slowed more than expected in September. is likely to remain range-bound in the short term. The market will wait through the weekend and look for news," said Tai Wong, head of base and precious metals derivatives trading at BMO.
The dollar .DXY too benefited from safe-haven inflows, limiting gold's upside. USD/
Focus was also on an elusive U.S. coronavirus relief aid deal. can move back up "if the U.S. congress passes a stimulus bill, that seems to be what this market is hanging on to for now," Haberkorn added.
Elsewhere, silver XAG= eased 0.6% to $23.73 an ounce, platinum XPT= dropped 2% to $878.47 and palladium XPD= was down 0.1% to $2,313.68.