Spot gold hovered around $1,060 an ounce on Friday, after rising in the past two sessions, with investors focussing on the pace of the dollar's slide after it hit a new 14-month low versus the euro. Skip related content
Gold edged up to $1,060.70 an ounce by 0315 GMT, compared with New York's notional close of $1,060.00.
It is poised to rise 0.7 percent on the week, posting its fourth straight week of gains.
Bullion hit a record high of $1,070.40 last week.
"The mood looks good enough for gold to test $1,070.40 in the near future...The dollar is down against major European currencies, Asian currencies are strong as well," said Kaname Gokon, deputy general manager at Japanese commodity brokerage Okato Shoji Co's research section.
"Gold has tested $1,050-$1,054, but in vain, because there was solid buying. It's been resilient and that is generating a consensus that that level is a floor for now," he said.
The greenback's weakness has increased investor interest in the precious metal as a hedge against the U.S. currency. A weaker dollar also makes gold cheaper for non-U.S. investors.
U.S. gold futures for December delivery were at $1,061.40 an ounce, up 0.3 percent, after falling $5.90 to $1,058.60 on Thursday.
In the currency market, the dollar ground to its latest low for the year against the euro on Friday as the market took aim at options barriers, while sterling, a laggard in the broad rally against the dollar, rose ahead of UK growth data.
There are expectations that U.S. interest rates will remain low for a long time, a view reconfirmed on Thursday by Chicago Federal Reserve President Charles Evans who said policy accommodation was still the top priority.
Gold is also seen as a safe haven at a times when the economic outlook is uncertain.
But so far, no strong money inflows have been detected going into gold-backed securities.
Holdings of the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, stood at 1,108.094 tonnes on Thursday, unchanged from the previous business day when the holdings fell 1.22 tonnes.
An overnight report on a plan by Russia to sell gold abroad for the first time since Soviet era has had little impact on the gold market, traders said.
Interfax reported on Thursday that the government has already approved the sales, with the amount undisclosed, by Russia's State Precious Metals and Gemstones Repository.
