2021.06.2410:29:00UTC+00Gold Prices See Mixed Trend As Investors Digest Fed Comments

Gold prices were mixed on Thursday after two Fed officials said a period of high inflation in the United States could last longer than anticipated.

Spot gold edged up 0.2 percent to $1,781.65 per ounce, while U.S. gold futures were down 0.1 percent at $1,781.75.

The dollar erased early gains while yields on 10-year Treasuries were steady as investors struggled to make sense of the mixed views from Fed officials on inflation and the rate outlook.

Both Atlanta Fed President Raphael Bostic and Fed Governor Michelle Bowman said that recent price increases are likely to be temporary, but it may take longer than anticipated to fade. Bostic projected a rate hike in late 2022, citing faster growth and higher inflation.

Separately, Dallas Fed President Robert Kaplan said that the economy will likely meet the Fed's requirements for stimulus withdrawal sooner than thought.

The Bank of England's monetary policy announcement is due at 7:00 am ET.

The Monetary Policy Committee is widely expected to hold the key rate at a record low of 0.10 percent and the quantitative easing program at GBP 895 billion.

Investors will be paying close attention to its tone on inflation and the outlook for rates.

Reports on U.S. final GDP for the first quarter, weekly jobless claims for the week ended June 19, durable goods orders and wholesale inventories for May are due in the New York session.