Gold was set for its best weekly gain in more than a month on Friday, as a softer dollar and mounting concerns about the deteriorating fiscal outlook for the world's biggest economy boosted the metal's safe-haven appeal.

Gold futures turned lower Thursday after a three-day winning streak, as the dollar strengthened and investors locked in profits after prices touched a two-week high earlier in the session. The U.S. dollar index rose 0.

Gold prices continued their upward momentum in Asian markets on Thursday, hitting a two-week high as investors sought refuge from ongoing worries about the U.S. debt situation and geopolitical instability in the Middle East.