2023.03.3010:19:00UTC+00Gold Flat To Higher In Lackluster Trade

Gold prices were flat to slightly higher on Thursday amidst uncertainty over the rate outlook.

Spot gold edged up 0.2 percent to $1,967.95 per ounce, while U.S. gold futures were little changed at $1,984.85.

The dollar weakened on improved risk sentiment amid receding worries about the global banking sector.

However, bond yields edged higher on expectations that Fed officials may raise interest rates one more time before the end of the year.

Focus shifted to the Fed's next policy meeting in May, with analysts seeing a 50/50 split between a pause and a 25-bps rate hike.

In economic releases, data showed earlier today that Spain's consumer price inflation eased in March to the weakest since August 2021 due to falling electricity and fuel prices.

Investors await the release of German inflation data later in the day for additional clues on the path of European Central Bank policy.

In the U.S., trading later in the day may be impacted by reaction to a report on weekly jobless claims as well as a revised reading on fourth quarter GDP.