Gold is trading slightly higher regaining some ground today after hitting 2-week lows yesterday on better-than expected U.S. Unemployment data with a decrease in unemployed people of 43,000 and the FED's FOMC statement and the outlook on a rate hike.

Later in the day a set of U.S. data including the GDP for the fourth quarter, the Chicago Purchasing Manager's Index and the Reuters/Michigan Consumer Sentiment will be in the focus.

Inflation in the Eurozone extended its drop making the precious metal as inflation hedge less attractive.

Higher interest rates make gold less attractive as the metal is not yield-bearing. A stronger greenback also weighed on the dollar-denominated precious metal as it makes it more expensive for holders of other currencies.

The precious metal is currently quoted at USD1,263.10, +0,55% a troy ounce. On Thursday last week gold reached a five-month high at USD1,307.40.