On Thursday, markets hunkered down in anticipation of important U.S. inflation data that was due later in the day as gold prices remained at one-month lows and copper prices stabilized after suffering significant losses.

Spot gold edged up 0.1% to $1,916.34 per ounce; meanwhile gold futures dipped 0.1% to $1,948.85 per ounce.

The dollar's strength and rising yields had put significant downward pressure on the price of gold throughout the previous week. Investors' bets that U.S. interest rates will stay higher for longer this year contributed to traders' increased reliance on the dollar as risk appetite declined.

Any indications of persistent inflation offer the Fed greater motivation to maintain high rates and strict monetary policy, which is bad news for non-yielding assets like gold.

The dollar gained strength due to expectations of a higher CPI figure, outpacing gold as the safe haven asset of choice. The 10-year U.S. Treasury yield was close to 2023 highs, while the dollar was trading at five-week highs.