2022.05.1910:06:00UTC+00Gold Edges Higher As Dollar Dips

Gold prices were a tad higher on Thursday, as an equity sell-off deepened amid expectations that the tightening of monetary policy in the United States will be an extended process.

The dollar edged lower in early European trade and U.S. bond yields retreated, helping offer some respite for bullion in the short term.

Spot gold rose half a percent to $1,826.13 per ounce, while U.S. gold futures were up half a percent at $1,824.50.

Investors fretted over the impact of the prolonged Ukraine-Russia war, higher interest rates and China's zero-COVID policy on global growth.

Downside risks to growth intensified after U.S. retail giants Target and Walmart missed earnings expectations by wide margins and issued back-to-back profit warnings.

Chicago Fed President Charles Evans said Wednesday that the Fed aims to reach a neutral rate -- the rate at which the economy is stable -- sooner rather than later, according to Bloomberg Television.

He expects the U.S. central bank to hike short-term interest rates by 50 basis points at the upcoming June meeting "and probably thereafter."

According to a May survey from Bank of America Global Research, top economists and money managers worldwide say they see "below-trend growth and above-trend inflation" as the most likely outcome for the global economy over the next year.

Trading later in the day may be impacted by U.S. reports on initial jobless claims, existing home sales and leading economic indicators.