FXStreet reports that gold prices rallied as the US Fed urged more spending was required to avoid economic turmoil, strategists at ANZ Bank apprise.

"Chair Powell said additional fiscal support could be costly but worth it, amid significant downside risks to the economy. That pushed investors further into safe-haven assets."

"Global bonds rallied, with yields on US treasury bonds subsequently falling, which also increased the attractiveness of gold."

"Earlier in the week, signs of deflation had also boosted support for gold. Consumer prices in Sweden fell -0.4% in April, while US CPI declined the most on record."