Spot gold was steady at $1,253.90 an ounce after jumping nearly 1 per cent on Thursday - its biggest jump in three weeks. The metal is up 0.2 per cent for the week, after having hit a four-month low earlier in the week.
The ECB outlined a four-year 400 billion euro ($544.86 billion) scheme giving banks that have been holding back credit an incentive to increase lending to businesses in the euro zone, and pledged to do more if needed to fight off the risk of Japan-like deflation. The bank also noted that euro zone inflation has been stuck in "the danger zone" below 1 per cent since October.
Gold is often seen as a hedge against inflation and a slowing economy. Silver market players are in favour of an electronic, auction-based system for setting a benchmark price with a broader base of contributors when the 'fix' ceases in August, the London Bullion Market Association said.
Among other precious metals, platinum and palladium added to gains after South Africa's AMCU union president said the union's 12,500 rand ($1,200) per month wage demand was "non-negotiable", dashing hopes of a speedy resolution to the five-month strikes.
Palladium was on track for a fourth straight weekly gain.
