Spot gold rose to $2,048.86 an ounce by 10:58 GMT on Thursday, recovering slightly after falling to $2,029 per ounce yesterday.
The precious metal has been under selling pressure at the start of 2024, as traders weigh the possibility of an interest rate cut from the Federal Reserve later this year.
The Fed released the minutes from its December meeting on Wednesday, which showed policymakers believe rates could fall by up to 75 basis points in 2024, but there is little consensus on the timing. This has dampened optimism for an early rate cut, which had previously boosted gold prices.
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Traders are now pricing in just a 65% chance of a 25 basis point cut in March, down from over 70% earlier this week. Still, gold remains up by over 10% in 2023 due to easing rate hike expectations.
Further direction will likely come from key US jobs data due on Friday, which will provide fresh clues on the health of the economy and future Fed policy.