FX.co ★ Gold Dips On Dollar Strength

Gold prices eased for a second consecutive session on Thursday and the dollar traded higher, as investors assessed inflation data from the U.S. and China and awaited the Bank of England's interest-rate decision.

Spot gold slipped 0.2 percent to $2,027.15 per ounce while U.S. gold futures were down 0.2 percent at $2,032.95.

Data released overnight showed U.S. consumer inflation fell below 5 percent for the first time in two years. So-called core inflation also eased, giving the Federal Reserve room to pause interest-rate increases soon.

Elsewhere, a measure of China's consumer price inflation reached its lowest level in more than two years in April and factory gate deflation deepened, raising fresh worries about weak demand in the country.

Data showed China's consumer price inflation rose an annual 0.1 percent in April, marking the lowest rate since February 2021. Producer prices declined 3.6 percent from a year earlier, marking the fastest rate since May 2020.

Trading later in the day may be impacted by U.S. reports on producer price inflation and weekly jobless claims.

The Bank of England policy announcement is due, with economists expecting another 25-bps rate hike.