Gold retreated for a second straight session on Friday after the BoJ’s surprise negative interest rate move gave a boost to equities, yet the metal was set for a big monthly gain.
The precious metal climbed to a high of $1127.97 an ounce this week, the highest since November, while currently trading around $1112.22.
Since the beginning of the year, gold has been benefitting mainly from safety demand amid the sharp sell off in equities, fall in oil prices and persisting worries from China.
Probably, the yellow metal got some support from physical demand this week, ahead of the Luna New Year that starts on February 7.
Now, gold is poised for its strongest monthly climb in a year, following a 10 percent loss last year.
Fed statement
The Federal Reserve statement provided indication that policymakers could change their monetary stance according to the latest global developments.
The Fed said it was closely monitoring to the impact of the low oil prices and volatility in financial markets on the U.S. economy, while stressed interest rates would be cut gradually.
Data released on Thursday showed that U.S. durable goods orders fell to the lowest level in 16 months in December, raising concerns about the strength of the U.S. recovery.
Later in the day, U.S. GDP data may signal an ease in the pace of expansion to 0.8 percent in the fourth quarter from 2.0 percent in the previous three months.
The U.S. dollar rose to hover around 99.12, according to the dollar index, but still trades near its lowest level in two weeks.
The dollar is preparing for its first weekly drop in three, thereby enhancing demand on gold as an alternative investment.
Oil prices resumed its rebound from 12-year lows to hover near three-week high around $33.45 a barrel.
