Blake Lively and Penn Badgley: On-Set Sweethearts

Enjoying a little quality time together before getting to work, Blake Lively and Penn Badgley were spotted holding hands on the set of "Gossip Girl" on Wednesday (January 14).

Not into displaying their PDA openly, an onlooker tells that Blake suddenly let go of her co-star beau's hand immediately upon seeing the paparazzi.

Meanwhile, in the February issue of Vogue, Blake talks about their hit CW show has the best style around, saying, "The fashion is just unbelievable. You can watch our show on mute and be entertained."

And though the economy took a turn for the worse, Miss Lively and friends aren't noticing. "We live in an alternate universe on the show; it's a heightened reality, so I don't think the writers would work that in," Lively said of the recession.

Gossip Girls

Enjoy the pictures of Blake Lively and Penn Badgley on the set of "Gossip Girl" (January 14).