Nowadays, the increasing demands of location-based services (LBS) have spurred the rapid development of indoor positioning systems (IPS). However, the performance of IPSs is affected by the fluctuation of the measured signal. In this study, a Gaussian filtering algorithm based on an extreme learning machine (ELM) is proposed to address the problem of inaccurate indoor positioning when significant Received Signal Strength Indication (RSSI) fluctuations happen during the measurement process. The Gaussian filtering method is analyzed and compared, which can effectively filter out the fluctuant signals that were caused by the environment effects in an RFID-based positioning system. Meanwhile, the fast learning ability of the proposed ELM algorithm can reduce the time consumption for the offline and online service, and establishes the network positioning regression model between the signal strengths of the tags and their corresponding positions. The proposed positioning system is tested in a real experimental environment. In addition, system test results demonstrate that the positioning algorithms can not only provide higher positioning accuracy, but also achieve a faster computational efficiency compared with other previous algorithms.