Gold steadied as traders cautiously await highly anticipated US inflation data in an effort to assess the Federal Reserve’s next move on interest rates.
Bullion has had a lackluster year, reaching its year-high in March amid the Russia-Ukraine crisis before tumbling about 18 per cent as monetary tightening by global central banks weighed on the precious metal.
Comments from the Bank of England Governor Andrew Bailey on removing emergency support by Friday helped push bullion lower this week.
In the latest economic data, prices paid to US producers rose more than expected, suggesting inflationary pressures will take time to moderate and keep the Fed on its aggressive rate-hike track.
Officials from the central bank committed to raising interest rates to a restrictive level in the near future to curb inflation, although some noted the importance of calibrating the increases to mitigate risk.
Investors are on tenterhooks as they await US consumer price figures later Thursday that may determine if the Fed will deliver a fourth-straight outsized hike in interest rates, which would add pressure on bullion.
Spot gold was little changed at $1,674.62 an ounce as of 7:48 a.m. in Singapore, after gaining 0.4 per cent on Wednesday. The Bloomberg Dollar Spot Index was steady. Silver and palladium advanced, while platinum was flat.