Gold is currently at $1,102.30 (-0.35%). The precious metal gave up some of its Wednesday gains, but stayed close to a one-and-a-half-week high. Investors turned to gold as stocks and oil prices continued to fall. The latest downward revision of the global economic growth forecast from the International Monetary Fund added to concerns over health of the global economy.

Expectations for the Federal Reserve to raise its interest rates in March declined after the US. Department of Labor reported weaker inflation in December. Nevertheless the central bank of the U.S. is still expected to continue raising interest rates. This limits gold's upward potential. The dollar, bullions major opponent, is likely to do well amid higher rates.