The following is a toy version of something I've been fiddling with and I thought it might be more efficient to post it as a question here.
Just to fix definitions: for me, a complex-valued function $f$ on a group $G$ is said to be positive-semi-definite if, for every choice of points $x_1, \dots, x_n\in G$, the $n\times n$ matrix $[f(x_i^{-1}x_j)]_{i,j=1}^n$ is PSD in the usual sense. Note that in this definition I do not assume $G$ is countable, nor do I assume $f$ is continuous.
Question 1. Let $f$ be a continuous PSD function on $\mathbb R$, and pick a finite subset $F\subset R$; then let $E=\{-x+y \mid x,y \in F\}$. Does there always exist a PSD function $h$ on $\mathbb R$, with finite or countably infinite support,such that $h\vert_E = f\vert_E$ ?
Obviously, if we knew that the ``truncation'' of $f$ to the set $E$ was itself a PSD function on $\mathbb R$, then the answer to Q1 would be positive. But I don't see why this truncated function would always be PSD.
Question 2. The analogue of Q1 with $\mathbb R$ replaced by $\mathbb R^d$ for $d\geq 2$.
My personal suspicion is that Q2 will have a negative answer but this is based on pessimism rather than any genuine intuition.