Gold traded higher on Friday amid risk aversion after the Bank of unexpectedly tweaked its monetary policy framework.
Spot gold edged up 0.3 percent to $1,951.80 per ounce, while U.S. gold futures were up 0.3 percent at $1,950.60.
However, bullion remains on track for a weekly loss amid the diminished prospect of a U.S. recession.
Earlier today, the Bank of Japan took steps to make its yield curve control policy more flexible by raising the upper limit for the fixed rate operations and offering to buy 10-year Japanese government bonds at 1.0 percent in fixed-rate operations, instead of the previous rate of 0.5 percent.
The announcement sent bond yields soaring and spurred risk aversion in financial markets.
The dollar strengthened against major rivals after data showed that the U.S. economy grew more than expected in the second quarter, helping quell fears of an imminent recession.
