An advance in gold prices on Thursday amid softened greenback and treasury yields, while investors are looking for any clues regarding Fed's intentions for the next interest rate hike.

Spot gold edged up by 0.3% at $1,808.73 per ounce, post 1% slump in the earlier session while U.S. gold futures dipped 0.1% to $1,814.70 per ounce.

A retreat in the U.S. 10-year treasury yields post touching its highest level in 6 months in the earlier session.

Investors are awaiting the release of the U.S. jobless claims figures to assess its impact on Fed stance towards interest rate hike, the figures are also crucial as it will affect the gold prices, if the claims surged that shall ease the dollar and back up gold.

Gold encountered tense period this year due to the elevated interest rates.

Fed hiked rates this December by 50 bps post raising it by 75 bps for four times in a row, Fed officials stated that they shall continue in hiking rates in order to combat inflation.