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Gold prices fluttered in a tight range on Thursday, as investors turned their attention to U.S. economic data that could offer additional insights into when the Federal Reserve might implement interest rate reductions.

Spot gold was steady at $2,309.23 per ounce, as of 0057 GMT. U.S. gold futures lost 0.2% to $2,316.80.

The U.S. weekly jobless claims data is due at 1230 GMT, and the University of Michigan's consumer sentiment reading on Friday. The consumer price index data is scheduled to be released next week.

"Despite market expectations of rate cut in September, gold traders are cautious about making big moves ... If U.S. inflation report comes hotter then prices could fall to $2,290," said Ajay Kedia, director at Kedia Commodities, Mumbai.

"A breach below $2,290 could see prices falling to $2,240."

According to the CME's FedWatch Tool, traders are currently pricing in about a 66% chance that the Fed will cut rates in September. Lower interest rates reduce the opportunity cost of holding bullion.

Fed Bank of Boston President Susan Collins said on Wednesday that the U.S. economy needs to cool off to get 2% inflation.

"Central bank demand, investor demand – particularly in East Asia – as well as a persistent geopolitical premium have helped gold dismiss the challenges presented by the current investment environment," the World Gold Council (WGC) said in a note.

On the geopolitical front, Hamas said on Wednesday it was unwilling to make more concessions to Israel in negotiations over a ceasefire for Gaza.

Platinum was flat at $972.15 per ounce and palladium gained 0.2% to $953.79.

Johnson Matthey said in a report that the platinum market faces its largest supply shortfall in 10 years in 2024 as shipments from Russia return to normal from last year's highs and industrial demand stays firm.

Spot silver dipped 0.1% to $27.32