Gold's positive trend lower during Wednesday's trading session was supported by mixed US economic data and weakened again as the market focused on Fed Chairman Jerome Powell's speech.
At 9.25 am, gold prices were at $2,649.65, unchanged from the opening of early trading on Thursday in the Asian session.
Powell said the US economy was in good shape, adding that the September rate cut was a message to support the labor market.
He said that despite showing progress, it was too early for the Fed to declare victory over inflation and the US central bank needed to be cautious in setting monetary policy.
Recently, inflation data has been stubborn compared to market expectations. The latest three readings show that the disinflation process has stalled towards the 2% target.
In addition, St. Louis Fed President Alberto Musalem suggested that the Fed should now slow down or stop cutting rates.
This is because the labor figures are in line with the current economy and inflation is able to reach the 2% target within two years.
Meanwhile, Richmond Fed President Thomas Barkin stated that risks to inflation and maximum employment appear balanced.
At the end of the week, US economic data will feature Fed officials' speeches, Jobless Claims and Non-Farm Payroll (NFP) figures.
