The European Central Bank raised interest rates by 25 basis points to 3.75 percent, in line with expectations, in the seventh consecutive increase since last year, to control inflation.
The bank has kept its options open on future moves as its battle to tackle high inflation in the euro zone continues.
The dollar index is heading for a weekly loss, making the precious metal more attractive to buyers than holders of other currencies.
Investors await US non-farm payrolls data at 12:30 GMT.
price movements
As of 00:39 GMT, there was little change in gold in spot trade, and it was recording $2048.81 an ounce, but it was up around 3% over the week, and contracts at US gold futures rose 0.1% to $2057.10 an ounce.
In other precious metals, silver fell 0.3% to $26 an ounce, platinum rose 0.3% to $1,042.15 an ounce and palladium rose 0. .6% to $1456.73 an ounce.
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