Although gold prices made little progress on Thursday, they had lost money for four consecutive days as traders remained cautious of the yellow metal due to the uncertainty surrounding the Federal Reserve's upcoming interest rate decision.

Spot gold traded flat at $1.933.63 per ounce while gold futures slumped $1,943.80 per ounce.

Following Fed Chair Jerome Powell's testimony to the House Financial Services Committee of Congress that interest rates will likely need to rise higher to contain inflation, gold prices temporarily touched the lowest level in three on Wednesday, breaking a month-long pause.

Despite the fact that the price of the yellow metal has been fluctuating between $1,930 and $2,000 for the past month, economists predict a breakout to the downside, especially if the dollar increases amid Fed uncertainty.

Given that it raises the potential cost of owning metal, the likelihood of additional U.S. interest rate hikes has put significant downward pressure on gold over the past month.