Gold prices were nearly unchanged on Thursday as markets anticipated US jobs data due at the end of the week for guidance on monetary policy for the remainder of the year. Spot gold shed 0.01 percent at $1,344.56 ounce by 1:36 pm EST (1836 GMT). It touched $1,332.30 an ounce in the previous session, its lowest since Jan. 23.
US gold futures for April delivery settled up $4.80, or 0.4 percent, at $1,347.90 per ounce. The US Fed held interest rates unchanged on Wednesday but raised its inflation outlook and flagged "further gradual" rate increases. "One thing that could throw a wrench into the Fed's plans to raise three times this year is wages. Employment has certainly continued to march higher with unemployment dropping, but wages have been sticky," said Chris Gaffney, president of world markets at Jacksonville, Florida-based EverBank.
Stronger-than-expected jobs data, lower unemployment and higher wages would signal strength in the economy, and could in turn strengthen the dollar and pressure gold, Gaffney added. Gold gained just 3.2 percent in January as the dollar fell to three-year lows against a basket of major currencies. It hit a 17-month peak of $1,366.07 on Jan. 25.
"We remain somewhat friendly to gold in the short-term. The dollar seems to be adrift, as investors are unsure what direction to push it," said INTL FCStone analyst Edward Meir. Holdings of the world's largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares, fell another 4.1 tonnes on Wednesday, data from the fund showed, cutting its inflow for January to just 3.9 tonnes.
In other precious metals, silver slipped 0.6 percent to $17.20 per ounce and platinum fell 0.5 percent to $999.50. Palladium was 0.3 percent higher at $1,030.97 per ounce after touching $1,013.72 earlier in the session, its lowest since Dec. 18. The metal is down about 3.5 percent so far this year.