Investing.com - Gold prices remained slightly lower on Thursday, but losses were expected to remain limited as sentiment on the greenback remained vulnerable despite upbeat U.S. data and a hawkish outlook by the Federal Reserve.
Comex gold futures were down 0.10% at $1,341.90 a troy ounce by 08:40 a.m. ET (12:40 GMT).
The U.S. Department of Labor reported on Thursday that initial jobless claims decreased by 1,000 to 230,000 in the week ending January 27. Analysts had expected jobless claims to rise to 238,000 last week.
The greenback briefly rebounded after the Fed, at the conclusion of its policy meeting on Wednesday, signaled its confidence about inflation and growth in the U.S.
The Fed said that inflation is likely to rise this year, boosting expectations for further interest rate hikes under incoming central bank head Jerome Powell.
The Fed left rates unchanged on Wednesday, in widely expected move. The meeting was current Fed chair Janet Yellen's last.
Market participants were now looking ahead to Friday's nonfarm payrolls report for further indications on the strength of the job market.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.17% at 88.81.
Gold is sensitive to moves in the dollar. A weaker dollar makes gold less expensive for holders of foreign currency.
Elsewhere on the Comex, silver futures declined 0.70% to $17.12 a troy ounce.