Gold prices held steady near 13-month high on Wednesday as weak U.S. economic data this week curbed expectations for further Fed tightening.
Investors also factored in the likelihood of a U.S. recession later this year. Spot gold edged up 0.1 percent to $2,023.62 per ounce, while U.S. gold futures were little changed at $2,040.30.
The dollar wallowed near two-month lows as weak U.S. data fueled speculation that the Federal Reserve is at the end of its tightening cycle.
Markets are now pricing in a 60 percent chance of the Fed standing pat on interest rates at its May 2-3 meeting.
However, Federal Reserve Bank of Cleveland President Loretta Mester said on Tuesday that policymakers should move their benchmark rate above 5 percent this year and hold it at restrictive levels for some time to quell inflation.
Trading later in the day may be impacted by reaction to reports on private sector employment, service sector activity and the U.S. trade deficit.
Market participants also look ahead to the release of the Labour Department's closely watched monthly jobs report on Friday.
Economists expect the report to show employment increased by 240,000 jobs in March after an increase of 311,000 jobs in February. The unemployment rate is expected to hold at 3.6 percent.
