Spot gold gained 0.4% to $1,783.02 per ounce at 0910 GMT, and was up over 1% for the week.
While the weaker dollar is helping, gold is struggling to regain investor confidence after last week’s U.S. Federal Reserve meeting, Commerzbank analyst Daniel Briesemann said.
A surprise hawkish tilt from the Fed had driven a sharp slide in bullion.
However, the spending plan should be positive for gold, as it has to be financed to a large extent with higher debt, Briesemann added.
Progress on the plan weighed on the dollar index, making gold cheaper for those holding other currencies, ahead of U.S. producer price data that could paint a clearer picture on rising inflation.
Daniel Briesemann, Briesemann, Jerome Powell, Giovanni Staunovo, Arundhati Sarkar, Alexander Smith
U.S, Federal Reserve, Fed, UBS