2021.08.0510:41:00UTC+00Gold Little Changed Amid Dollar Strength

Gold prices were flat to slightly lower on Thursday as the dollar crept higher on hawkish comments from Federal Reserve Vice Chairman Richard Clarida cementing expectations for a hike in interest rate in early 2023.

Spot gold was little changed at $1,811.83 per ounce, while U.S. gold futures were marginally lower at $1,813.85.

Speaking at an online event hosted by the Peterson Institute for International Economics, Clarida said that criteria for raising rates could be achieved by the end of 2022, warranting an action in early 2023.

Although the labor market recovery is far from desired levels, inflation has exceeded the Fed's 2 percent goal. Clarida said he expects the labor market to have reached the maximum employment goal by the end of 2022.

"Given this outlook and so long as inflation expectations remain well anchored at the 2% longer-run goal . commencing policy normalization in 2023 would, under these conditions, be entirely consistent with our new flexible average inflation targeting framework," he added.

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.

U.S and Canadian trade data for June and U.S. weekly jobless claims for the week ended July 31 will be featured in the New York session.