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Gold edged up on Friday as the dollar consolidated weekly gains.
Spot gold rose 0.3 percent to $2,028.26 per ounce while U.S. gold futures were up 0.4 percent at $2,030.75.
The dollar edged lower in European trade but was set for a weekly gain on growing doubts over early rate cuts by the U.S. Federal Reserve.
Markets remain attached to the prospect of a March rate cut despite cautious comments from several Fed officials in recent sessions.
Atlanta Federal Reserve President Raphael Bostic said on Thursday he expects policymakers to start cutting rates in the third quarter of this year and the goal ahead is to calibrate policy to be not so restrictive.
In economic releases, data showed British retailers suffered the biggest drop in sales for almost three years during December, increasing the odds of an early rate cut by the Bank of England.
Elsewhere, German producer prices declined for the sixth straight month in December due to cheaper energy costs.
U.S. reports on existing home sales and consumer sentiment are awaited later in the New York session.