"The timing and pace of the coming reduction in asset purchases will not be intended to carry a direct signal regarding the timing of interest rate lift-off, for which we have articulated a different and substantially more stringent test," Powell said in his virtual address.

"We have said that we will continue to hold the target range for the federal funds rate at its current level until the economy reaches conditions consistent with maximum employment, and inflation has reached 2% and is on track to moderately exceed 2% for some time."

Gold was worth US$1,818 an ounce on the spot market at the time of writing.

Among the gold majors, Newmont gained 2.75% in New York on Friday and Barrick Gold rose 2.12% in Toronto.

In London, diversified Anglo American led gains with a rise of more than 3%, followed by Antofagasta which closed up 2.42%.

Finally, Fortescue Metals Group was up more than 6% in morning Australian trade as the iron ore miner announced a record full-year performance and dividends more than double what was paid in FY20.