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[SINGAPORE] Gold headed for the first weekly gain in three as investors turned their attention to the Bank of Japan's meeting on Friday, with the potential for additional stimulus after the metal got a boost from the Federal Reserve's statement that reiterated only a gradual tightening of US policy.
Bullion for immediate delivery traded 0.2 per cent higher at US$1,338.24 an ounce at 10:22 am in Singapore as the dollar dropped for a fourth day, according to Bloomberg generic pricing. The metal is up 1.2 per cent this week, heading for a second monthly gain.
Gold's 26 per cent rally this year has been supported as investors see further stimulus from central banks in Europe and Japan coupled with a reluctance by the Fed to tighten further after raising rates in December.
Japanese policy makers are expected to expand their already unprecedented support program.
"Expectations of further largesse from the BOJ are supportive," Jordan Eliseo, Sydney-based chief economist at trader Australian Bullion Co, said by e-mail.
"We're also entering a seasonally strong period for gold prices, so further upside can't be discounted."