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Gold prices slipped on Thursday but were on track for a second consecutive weekly gain amid concerns of an escalation in the Russia-Ukraine conflict and mounting inflationary pressures.
Spot gold dipped half a percent to 1,968.77 per ounce after a six-session winning streak.
U.S. gold futures were down 0.7 percent at $1,970.20 after data showed that U.S. monthly producer prices increased by the most in more than 12 years in March.
The dollar eased and U.S. Treasury yields slipped after Fed Gov. Christopher Waller’s comments Wednesday indicated that inflation could have peaked and might start to fall.
The economy is strong enough to support higher rates, enabling the Fed to move prices down without causing a recession, Waller added.
Cleveland Fed President Loretta Mester and Philadelphia Fed President Patrick Harker are due to speak as investors watch for clues on how the U.S. central bank would reduce its trillions of dollars in bond holdings.
Trading later in the day may be impacted by reaction to reports on initial jobless claims, retail sales, import and export prices and consumer sentiment.
Investors also await the outcome of the ECB’s monetary policy meeting.
No change in interest rates is expected but hawkish guidance regarding future actions and any signal that asset purchases will end “early” in light of record-high inflation could boost the euro.
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