Gold rose more than 1 percent on Friday, trading above $1,300 in post-settle trade.
Gold was supported by a softer dollar and cautious interest rate comments by a voting U.S. Federal Reserve policy member, and was headed for a third week of gains. The U.S. dollar made its biggest drop against a basket of major currencies in two weeks, making dollar-denominated assets such as gold cheaper for holders of other currencies.
Spot gold was up 1.5 percent at $1,298.21 an ounce. Bullion has risen 1.5 percent so far this week.
U.S. gold for August delivery settled down 0.3 percent at $1,294.80 an ounce, well below Thursday's peak of $1,315.55, the highest since August 2014. It last traded up 0.25 percent at $1,301.60.