WASHINGTON (dpa-AFX) - Gold prices edged lower on Thursday, but held near a two-week high hit in the previous session as the dollar slipped amid indications that the Federal Reserve would hold rates steady or possibly cut them by the end of the year.
Dovish messages from global central banks as well as tepid U.S. inflation data caused a decrease in bond yields, helping limit deeper losses.
Spot gold slipped 0.3 percent to $1,304.65 per ounce, after having touched its highest level since March 28 at $1,310.50 in the previous session. U.S. gold futures were down about 0.4 percent at $1,308.25 an ounce.
The International Monetary Fund's warning about the slowing of global growth prospects and dovish messages being sent from the ECB and the Federal Reserve fanned fresh concerns over economic slowdown.
The IMF on Tuesday also cut its global economic growth forecasts for 2019, citing heightened trade tensions.
Federal Reserve officials remain worried about slowing economic growth abroad and the fading effects of President Trump's tax cuts, minutes from the Fed's March meeting showed overnight.
In its latest monetary policy announcement on Wednesday, the European Central Bank has reiterated its commitment to keep monetary stimulus in place until the region's economic slowdown reverses course.
Copyright RTT News/dpa-AFX
© 2019 AFX News
