Gold inched down on Thursday, slightly buoyed by a drop in the greenback and yields as markets lingered to be nervous about the possibility of extended period of hiked interest rate in the US.

Spot gold dipped 0.1% to $2,03.61 per ounce, while gold futures slumped by 0.2% to $2,047.55 per ounce.

However, gold remained mostly within a $2,000 and $2,050 trading range, that was set out through the earlier week, with traders now anticipating more hints on the interest rate trajectory.

Gold slumped within a holding trend following solid US economic figures and aggressive tone from Fed implying for a hawkish stance and prolonged interest rate hike, dashing hopes of early interest rate cut.

Projections now hover around cutting interest rate starting from June, making the gold market's short-term outlook lingered uncertain. A surge in the greenback, touching three-month peak, further impacted the bullion prices.

Higher interest rates bode negatively for the yellow metal.