SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.6% to 1,043.16 tonnes on Wednesday from 1,037.33 tonnes on Tuesday.
Fed officials, led by Chair Jerome Powell, have said repeatedly they expect price pressures to be transitory and monetary stimulus to stay in place for some time.
Physical gold demand in second-biggest bullion consumer India was negligible last week with most jewellery stores still shut by COVID-19 lockdowns, forcing dealers to offer steep discounts.
"However, the pace of the gold rally appears to be outpacing fundamentals right now, and the Relative Strength Index (RSI) has entered overbought territory.
More than 141.67 million people have been reported to be infected by the novel coronavirus globally and 3,163,124? have died, according to a Reuters tally.
The number of Americans filing new jobless claims fell to a four-month low last week, while the US market morale rose to its highest in a year in early March.
US bank Wells Fargo said it has expanded its precious metals trading business, filling gaps in the market left by the withdrawal of Bank of Nova Scotia (Scotiabank).
Biden unveiled a $1.9 trillion stimulus package proposal on Thursday designed to jump-start the economy and speed up the US response to the coronavirus pandemic.
SPDR Gold Trust the world's largest gold-backed exchange-traded fund, said its holdings fell 0.20% to 1,167.53 tonnes on Tuesday from 1,169.86 tonnes on Monday.
US Congressional Republicans and Democrats scrambled to pass a new round of coronavirus aid on Thursday with lawmakers from both parties saying that failure to agree was no longer an option.
The US Federal Reserve is expected to keep interest rates pinned near zero and to signal where rates are headed in the coming years at it's final policy meet of the year. The Fed's policy statement is due at 1900 GMT.