The nervousness ahead of the crucial US inflation data tempers investors' appetite for riskier assets and lends support to the safe-haven Gold price amid a modest US Dollar downtick.
Several Federal Reserve officials reiterated on Wednesday that more work was needed to bring down inflation, which should allow the central bank to keep interest rates higher for longer.
New York Fed President John Williams said that the US central bank will begin cutting interest rates in 2024, albeit in the latter half of the year as the path to the 2% inflation target is uneven.
Atlanta Fed President Raphael Bostic said that he is comfortable advising patience when it comes to loosening policy and that the central bank has not declared victory over inflation yet.
Separately, Boston Fed Bank President Susan Collins said that the central bank will likely cut rates this year, though should be taking time to assess data before making any change to the policy.
The second estimate of the US GDP growth released on Wednesday showed that the US economy expanded by a 3.2% annualized pace in Q4, slightly less than the 3.3% rise reported originally.
The data, meanwhile, reinforced the view that the US economy remains in good shape and hawkish Fed expectations, though does little to provide any meaningful impetus to the US Dollar.
Nevertheless, the Fed's hawkish outlook on interest rates might cap any further appreciating move for the non-yielding metal ahead of the US Personal Consumption Expenditures (PCE) Price Index.
Thursday's US economic docket also features the release of Weekly Initial Jobless Claims, the Chicago PMI and Pending Home Sales, which, along with Fed speak, could provide some impetus.
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