On Thursday, gold prices maintained a holding pattern observed in previous weeks as markets anticipate the next Federal Reserve meeting. They were slightly above the lowest level in two months.

Spot gold advanced 0.3% to $1,944.06 per ounce, meanwhile gold futures muted at $1,959.65 per ounce.

The greenback and treasury yields rose as markets made predictions about the Fed's stance on additional interest rate hikes, which put pressure on the yellow metal, which has maintained a narrow trading range for almost three weeks.

As the US inflation and the labor market are currently running significantly beyond the central bank's targets, surprise rate increases in Australia and Canada raised some hopes that the Fed will do the same.

However, the pace of U.S. economic growth has also significantly slowed recently, leaving the Fed with little room to continue raising rates.

However, analysts predict that in the case of a U.S. recession later this year, the yellow metal will profit from the desire for safe haven assets. However, any significant gains in gold are anticipated to be constrained in the interim by the strength of the dollar.