Investors are betting that Democrat Joe Biden will become the next president but Republicans will retain control of the Senate, which will make it hard for the Democrats to pass the larger fiscal spending they have been pushing.
Making gold cheaper for holders of other currencies, the United States dollar held near a two-month low.
MSCI's all-country world stock index rose 0.25% to 592.84, adding to a week-long rally in which the benchmark for global equity performance advanced almost 8% to post its best week in nearly seven months.
But Trump moved to file lawsuits in states like Georgia and requested a vote recount in several battleground states, pointing to a broad effort to contest the results.
Gold headed for the biggest weekly gain in more than three months as investors awaited the final outcome of the U.S. election amid the prospect of further stimulus.
World markets lost momentum Friday after four straight days of gains on Wall Street, as vote counting across U.S. battleground states showed Democrat Joe Biden poised for victory.
"The market's assuming that Biden wins the White House but that the Senate is not going to be in the Democrats' hands, so you don't have as big of a stimulus", said Marc Chandler, chief market strategist at Bannockburn Global Forex in NY.
Non-farm payrolls came in ahead of expectations, although they were still down on last month, and the drop below 7% for the unemployment rate will be taken as further evidence that the USA economy is healing.
Silver gained 0.8 per cent to US$25.51 an ounce. "Ultimately that's going to happen but this is where the uncertainty lies", said Stephen Innes, chief global market strategist at financial services firm Axi.
The British pound traded at $1.3131, holding onto a hefty 1.23% gain from Thursday.
Italy's 10-year yield hit a record low of 0.603 per cent on expectations of further stimulus. Needless to mention, Fed will remain tolerant of the same, with the central bank recently articulating that it will stand pat on interest rates for the next three years.
What we know: Gold futures were up over 0.60% to trade at around $1,908/ounce, it's critical to note that the selling pressure seen in the U.S dollar index market is also making gold more attractive to buy.
The euro was up 0.88% to $1.1825 and the Japanese yen strengthened 0.96% versus the greenback to 103.52 per dollar. USA gold futures settled up 0.3% at $1,951.70.
Brent crude futures settled down US$1.48 at US$39.45 a barrel. USA crude futures fell $1.65 to settle at $37.14 a barrel.