Gold rose to a four-month high on Friday and was on track for a fifth straight weekly gain as the dollar fell against the euro on an agreement for a political coalition in Germany.
Spot gold was up 0.66 percent at $1,331.01 an ounce by 12:34 p.m. ET, having touched its highest since Sept. 15 at $1,333.05. The precious metal is up half a percent this week and set for its longest run of weekly gains since April. U.S. gold futures for February delivery were up 0.7 percent at $1,331.70.
The dollar index, which measures the greenback against six major currencies, fell to its lowest since Sept. 8 at 91.243. The euro jumped to a three-year high after party sources said German Chancellor Angela Merkel's conservatives and the Social Democrats (SPD) had agreed a blueprint for formal coalition negotiations.