Hedge funds and money managers boosted their bullish bet in COMEX gold to a 12-week high in the week to Jan. 26, U.S. Commodity Futures Trading Commission data showed on Friday.
Holdings of the largest gold-backed exchange-traded-fund, New York's SPDR Gold Trust, increased about 4 percent in January, the most in a year.
Spot gold touched a 12-week high of $1,127.80 on Wednesday, after the Fed said it was closely watching the global economy and financial markets and their impact on the U.S. economy.
Risks from China remained after its official Purchasing Managers' Index stood at 49.4 in January, below the 50-point mark that separates growth from contraction, and the weakest reading since August 2012.
U.S. economic growth braked sharply in the last quarter of 2015, expanding at an annual 0.7 percent rate.
The data underpinned hopes that the Federal Reserve would slow the pace of future U.S. rate increases, aiding gold.
Spot silver rose 0.3 percent to $14.30 an ounce, platinum slipped 0.4 percent to $867.55 and palladium was off 0.3 percent at $496.96.