On Thursday gold slightly rebounded from its loss in the previous session, but still remained around its two-week low at $1,161.40 (-1.25%). Short-covering and physical demand helped the precious metal climb.

The Federal Reserve put pressure on bullion when it said in its monetary policy statement (this time the benchmark interest rate remained unchanged) that raising rates at the next meeting depends on the progress made on employment and inflation. Market participants will be closely watching U.S. economic data.

Holdings in SPDR Gold Trust, the biggest gold-backed exchange-traded fund in the world, fell 0.17% to 694.34 tonnes on Wednesday.