Gold rose to a near three-week high on Friday as the Federal Reserve's decision to leave U.S. interest rates unchanged rattled investors' outlook on the global economy and weighed on equity markets in developed economies.
Spot gold was up 0.6 percent at $1,137.80 an ounce, after earlier touching its highest level since Sept. 2, at $1,141.50. Gold was on track to finish the week up around 2.7 percent, snapping a three-week losing streak.
The Fed kept interest rates unchanged on Thursday in a bow to worries about the global economy, financial market volatility and sluggish inflation at home. It left open the possibility of modest rate rises later this year.
"More supportive is the perception that the Fed seems to have lost a little confidence itself in the rate hike cycle," said Macquarie analyst Matthew Turner. "But we still think there will be a hike in December and therefore rallies are going to be capped."