Gold edged down on Thursday and was on course for its worst quarter since early 2021 as the greenback remained in demand as a safe haven.
Spot gold dipped 0.3 percent to $1,812.10 per ounce, while U.S. gold futures were down 0.3 percent at $1,812.75.
Bullion's outlook is clouded by top central banks staying committed to fighting stubborn inflation with aggressive tightening.
Falling U.S. Treasury yields have slowed the dollar's ascent, helping limit the downside in gold.
Risk-off sentiment prevailed in global equity markets after the world's top central bank chiefs warned that the high inflation pressure may last longer than expected.
Cleveland Fed chief Loretta Mester said the U.S. central bank is "just at the beginning of raising rates" and there are "risks of recession."
She wants to see the benchmark lending rate hit 3-3.5 percent this year and "a little bit above four percent next year".
The day's economic data proved to be a mixed bag, with Chinese PMI figures offering some comfort while Japan's industrial output in May marked the steepest fall in two years.
Germany's retail turnover recovered in May driven by non-food sales, while unemployment unexpectedly rose - snapping 15 straight months of decline.
French inflation quickened to the fastest since the euro was introduced, raising pressure on President Emmanuel Macron to address high inflation through a package of measures.
The eurozone jobless rate in May fell to 6.6 percent from a revised figure of 6.7 percent in April.
Canada GDP data for April, U.S. weekly jobless claims for the week ended June 25 and personal income and spending data for May will be featured in the New York session.
