Gold is up 0.5 percent for the week so far and the streak of weekly gains is the most since the week ending April 14.
USA gold futures were up 0.5% at $1,329 U.S.an ounce.
The dollar index, which measures the greenback against six major currencies, fell to its lowest since September 20 at 91.689.
The euro jumped against the dollar as the European Central Bank signaled it could begin to wind down its 2.5-trillion-euro ($3.01-trillion U.S.) stimulus program this year.
We had been mentioning in our forecasts over the last couple of days of how the gold prices continue to look strong despite the fact that the dollar has been gaining in strength and despite the return to full liquidity of the market.
Experts say spot gold is expected to test resistance at $1,329 USA per ounce, with a good chance of rising more to the next resistance level at $1,341.
Weak inflation at the producer level could add to concerns that the factors restraining inflation could become more persistent and result in the US Federal Reserve being more cautious about raising interest rates this year.
Investors will be watching the US Consumer Price Index (CPI) data due later on Friday.
USA import prices rose 0.1 percent in December following 0.8-percent advances in two of the previous three months, the Labor Department said Wednesday. Silver is on track for its first weekly loss in five weeks. Platinum was heading for its fifth straight weekly gain, rising 1.9% so far this week.
Palladium was up 0.5% at $1,088.50 U.S.an ounce, after dropping to a more than one-week low at $1,075.50 USA on Thursday.