Gold increased on Friday rising from the weakest level in three years reducing its weekly decline after the U.S. Federal Reserve announce it cuts its stimulus by $10 billion a month as the nation's economy improved. Bullion for February delivery added 0.2% to $1,195.70 an ounce as of 7:13 a.m. on the New York's Comex and it has dropped 3.2% this week.