The yellow metal rose as the US Federal Reserve (Fed) adopted a neutral rather than slightly hawkish tone at its December meeting.
This gave a hint that it will slow down the pace of policy easing this year.
At 9.20 am, gold was at $2,658.47, down 0.14% since it opened in early trading on Thursday in the Asian session.
During the December meeting, FOMC officials decided to cut borrowing costs by 25 basis points although some chose to keep rates on hold at the meeting due to the continued rising risk of inflation.
Earlier, the market took a cautious approach following news that President Donald Trump would consider tariffs on both adversaries and allies.
In addition, gold investors ignored a mixed US jobs report after private companies hired fewer workers than expected.
Fed Governor Christopher Waller said in a statement yesterday that tariffs will not cause sustained inflation that would move away from the Fed's 2% target.
Meanwhile, markets will be watching the US Non-Farm Payroll (NFP) report and the University of Michigan Consumer Sentiment report later in the week. If both strengthen, gold could continue to fall on the back of a stronger USD.
