Gold erased earlier losses on Thursday after the European Central Bank launched a multi-billion euro bond-buying program aimed at reviving a sagging euro zone economy.
President Mario Draghi said the ECB would print money to buy up 60 billion euros ($69 billion) worth of sovereign bonds a month in the euro zone, where inflation at minus 0.2 percent is far below the central bank's target of just under 2 percent.
He said inflation was expected to increase gradually later in 2015 and in 2016 as the ECB's monetary policy measures support demand and assuming a gradual increase in oil prices.
Gold is usually seen as a hedge against inflationary concerns.
Read MoreECB to launch$70B-a-month QEprogram
"Gold is reacting to what Draghi has to say, to the bigger package that was announced and to rebounding inflation expectations in the euro zone," ABN Amro analyst Georgette Boele said.