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Gold prices lingered near a one-week low on Thursday following five consecutive sessions of losses as the dollar sat atop mid-March highs after data showed the U.S. services sector unexpectedly gained steam in August.

Spot gold was steady at $1,919.68 per ounce by 0410 GMT, but still hovered close to its lowest level since Aug. 29 hit in the previous session. U.S. gold futures held their ground at $1,944.00.

The U.S. dollar was perched at its highest since March 16 and the benchmark U.S. Treasury yield rose after stronger-than-expected U.S. services sector data on Wednesday suggested that inflationary pressures remain. [USD/] [US/]

"While the Fed is done with tightening for current cycle, what remains highly uncertain is the outlook on Fed cut in 2024," said OCBC Executive Director and FX Strategist Christopher Wong.

"Gold may continue to stay depressed until Fed's dovish pivot comes into sight."

Higher U.S. interest rates raise the opportunity cost of holding gold, which does not earn any interest.

Boston Fed President Susan Collins on Wednesday called for the U.S. central bank to take its next monetary policy steps carefully, while acknowledging signs of progress in cooling inflation.

U.S. economic growth was modest amid a cooling labor market and slowing inflation pressures in July and August, a Federal Reserve report showed on Wednesday.

Policymakers expect persistently slower growth in top bullion consumer China, seeing its transition from an infrastructure- and investment-led economy to becoming consumption-driven as "difficult".

Data earlier in the day showed top metals consumer China's exports fell 8.8% in August year-on-year, while imports contracted 7.3%.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.4% on Wednesday.

Elsewhere, spot silver eased 0.2% to $23.12 per ounce, platinum gained 0.3% to $911.35 and palladium fell 0.6% to $1,208.04.