2021.05.2710:01:00UTC+00Gold Prices Mixed As Dollar Firms

Gold prices traded mixed on Thursday, as the dollar rose against major currencies for the first time this week and U.S. yields held steady ahead of key U.S. labor market and inflation readings.

Spot gold was marginally higher at $1,897.13 per ounce, after hitting its highest since Jan.8 at $1,912.50 on Wednesday. U.S. gold futures were down 0.2 percent at $1,897.30 per ounce.

The dollar found support amid signs the Federal Reserve is slowly but surely edging towards a discussion about tightening monetary policy.

Federal Reserve Vice Chairman for Supervision Randal Quarles said Wednesday that he was prepared to open talks on reducing the emergency support measures if the economy continues to power out of the health crisis.

Fed officials have recently downplayed rising price pressures, but a subtle shift in tone suggested that the time to talk about policy changes might be approaching.

Elsewhere, Bank of Korea Governor Lee Ju-yeol said the bank is preparing for an "orderly exit" from its record-low interest rate at some point in the face of accelerating inflation and a build-up of dangerous imbalances.

On Wednesday, the Reserve Bank of New Zealand (RBNZ) surprised many by projecting that it might hike interest rates as early as September next year.