Gold rose to $1,206.20 (-0.97%) amid risk-aversion.

Federal Reserve Chairwoman Janet Yellen was neither too hawkish nor too dovish speaking to the House Financial Services Committee on Wednesday. Yellen noted weakness in financial conditions, but left the door open for a rate hike this year.

The World Gold Council reported on Thursday that demand for gold rose in the fourth quarter of 2015 as Chinese investors tried to protect their funds from a weakening currency and central banks tried to diversify their reserves. Central banks bought 25% more gold in Q4.

Chinese demand for gold coins rose by 25% in Q4 2015 compared to the previous quarter. However slowing economy undermined demand for jewelry, which fell by 3% on an annualized basis. Chinese demand for the precious metal totalled 985 tonnes in 2015, followed by India's 849 tonnes. Together these two counties accounted for almost 45% of total global demand.