Gold rose on Friday as the dollar softened on uncertainty about the progress of what would be the biggest overhaul of U.S. taxes since the 1980s.
The U.S. House of Representatives approved on Thursday a package of tax cuts, while a Senate panel advanced its version of the legislation that has President Donald Trump's backing.
"They're pricing out Trump's tax reform once again as a result of those two proposals in Congress that are quite far apart from each other," said Jonathan Butler, commodities analyst at Mitsubishi in London.
The dollar weakened against a basket of six major currencies and was set for its biggest weekly loss in more than a month.
"There's also a lot of concern that the equity market rally is possibly becoming a little exhausted for now, and that should be supportive of gold in the short term," Butler added.
Spot gold was up 0.83 percent at $1,289.02 per ounce at 11:53 a.m. ET. It is up more than 0.7 percent for the week, and poised to post a second straight weekly gain.
U.S. gold futures for December delivery rose 0.85 percent to $1,289.10.