FX.co ★ Gold Edges Higher As Dollar Slides Ahead Of Key Data

Gold prices edged higher on Thursday and the dollar weakened as investors looked ahead to next week's Fed and ECB meetings.

Spot gold rose 0.4 percent to $1,996.90 per ounce, while U.S. gold futures were up half a percent at $2,005.05.

The dollar eased against its major rivals, with investors awaiting a preliminary reading on first quarter U.S. GDP along with reports on weekly jobless claims and pending home sales later in the day for clues to the economic and rate outlook.

Traders also keenly await the Fed's preferred inflation gauge on Friday for hints on when the Federal Reserve might consider pausing interest rate rises.

Fed funds futures are pricing in a chance of about 75 percent that the Federal Reserve will hike interest rates by 25 basis points (bps) when it meets next week. The European Central Bank is expected to deliver either a 25 or 50 basis point interest rate hike on May 04 and signal further rate hikes.

The Bank of Japan's monetary policy decision is due on Friday, with the central bank expected to keep all of its policy levers unchanged.