Gold edged up slightly to trade above $2,000 per ounce on Thursday, after having hit a more than two-week low in the previous session.
Spot gold rose 0.3 percent to $2,000.11 per ounce, while U.S. gold futures were up 0.2 percent at $2.012.05.
The dollar index eased, making bullion less expensive for buyers holding other currencies.
The upside remained limited following hawkish comments from Fed and European officials on the future path of interest rates.
Federal Reserve Bank of New York President John Williams said on Wednesday that inflation remained high and the central bank is prepared to use all monetary policy tools to restore price stability.
The European Central Bank must "carry on and act consistently" with interest rate hikes, policymaker Olli Rehn said last week.
Markets see an 86 percent chance that the Fed will raise rates by 25 basis points next month and then keep rates on hold through this year.
Looking ahead, ECB monetary policy meeting accounts are set to be released at 7.30 am ET.
In the New York session, U.S. weekly jobless claims data, U.S. Philadelphia Fed manufacturing index for April, Eurozone flash consumer confidence for April, U.S. leading index, and existing home sales data for March are due.
