Gold prices eased on Thursday as dollar ticked higher, with investors awaiting more cues on the timing of the US Federal Reserve's first interest rate cut this year, while palladium prices dropped to a fresh five-year low as demand concerns persist, reports Reuters.
Spot gold fell 0.4 per cent to $2,026.39 per ounce, as of 1230 GMT. US gold futures lost 0.5 per cent to $2,041.10 per ounce.
The dollar index gained 0.2 per cent, making bullion more expensive for other currency holders.
"At this point in time, there's nothing really in the price action that suggests we're going to see a breakout in either direction. The data we've seen recently shows that policymakers are still unsure as to whether it's quite time yet for interest rate cuts," said Craig Erlam, senior markets analyst at OANDA.
Fed officials want to hold off on cutting interest rates until they have more confidence that inflation is headed down to 2 per cent, and gave a range of reasons for feeling little urgency to start easing policy soon or to move quickly once they do.
High interest rates increase the opportunity cost of holding bullion.
Spot palladium, meanwhile, fell 1.9 per cent to $877.40 per ounce, after hitting $874.24, its lowest since August 2018, earlier in the session.
Both platinum and palladium are used by automakers in catalytic converters to clean car exhaust fumes.
Elsewhere, silver rose 0.6 per cent to $22.32 per ounce and platinum lost 0.3 per cent to $876.94.
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