The dollar index dropped almost at a seven-week low against its rivals.
Benchmark 10-year US Treasury yields declined below 1.6%, reducing the opportunity cost of holding non-yielding bullion.
The US Federal Reserve is set to hold a policy meeting next week. Gold serves as a shield against inflation that could happen as a result of stimulus measures.
Avtar Sandu, senior commodities manager at Philip Futures said, "with a delay due to the accelerating spread of the coronavirus, gold traders would expect the Fed and other central bankers to remain dovish."