A stronger U.S. dollar and the prospect for higher U.S. rates recently weighed on the precious metal as the precious metal is dollar-denominated and not yield-bearing. The Fed could start raising rates in the middle of this year (probably in June), and investors are preparing for the Fed next week to to get further indications on whether the bank will give up its "patient" approach regarding the timing of a rate hike.

Continuing uncertainty over Greece had limited impact on the price of gold. Yesterday German Finance Minister Wolfgang Schäuble said that Greek officials must stop wasting time and work on the planned reforms.

Gold is currently quoted at USD1,160.60, +0,57% a troy ounce. On Thursday the 22nd of January gold reached a five-month high at USD1,307.40. Yesterday bullion traded as low as USD1,147.30.