Gold prices were steady on Thursday, but were on track for a second weekly rise as the Ukraine conflict and rising inflationary pressures boosted demand for the safe-haven commodity.
Spot gold was little changed at $1,974.28 per ounce, as of 0426 GMT. US gold futures were down 0.4 percent at $1,977.60. So far this week, the metal has gained around 1.4 percent. Due to the holiday, most markets will be closed on Friday.
"Political risk premium through the Ukraine war escalation is building again, which pushed all prices higher in general commodities and that's really creating that inflation environment," said Stephen Innes, managing partner at SPI Asset Management.
"On the counter side, the market doesn't know whether this is just a short-term phenomena, or the markets are sort of paring back a little bit of risk because of what Fed's Lael Brainer said was less hawkish."
On Tuesday, Federal Reserve Governor Lael Brainard indicated the US central bank would begin raising rates and decreasing its bond holdings as soon as June to help bring down inflation, which touched a four-decade high in March.
"Gold at this moment is trending and it's supported mainly by what we have heard from the Fed, the U.S. inflation (data)," said Brian Lan, managing director at dealer GoldSilver Central.
Meanwhile, anticipating of a larger Russian offensive in eastern Ukraine, US President Joe Biden offered an additional $800 million in military aid to Ukraine on Wednesday. Non-yielding bullion is considered a safe store of value during uncertain times and a hedge against inflation.
The US dollar index eased off May 2020 highs following a dip in Treasury yields, making gold more attractive for other currency holders.
Spot silver was flat at $25.73 per ounce, platinum was unchanged at $986.27 and palladium rose 2.3 percent to $2,368.85.
