NEW YORK: Gold prices held slightly above the key $1,750 mark on Thursday as expectations of an early taper of the Federal Reserve's asset purchases eased, offsetting a firmer dollar and yields.

Spot gold was steady at $1,750.91 per ounce by 1:46 p.m. EDT. US gold futures settled 0.1% down at $1,751.80.

Gold rose 1.3% on Wednesday after data showed US consumer price increases in July were in line with economists' estimates and down from June.

"If prices can continue to trade sideways in the near-term, that would suggest that the recent spike lower is probably a near-term bottom," Jim Wyckoff, senior analyst at Kitco Metals, said.

The dollar took away some of gold's shine, steadying close to more than a four-month peak while benchmark US 10-year Treasury yields rebounded on Thursday.

The US Labor Department also reported that initial jobless claims dropped in the latest week and US producer prices jumped by a record 7.8% in the 12 months through July.

Investors were also focused on US President Joe Biden's spending plans. The US Senate on Wednesday approved a $3.5 trillion budget plan that followed the chamber's passage on Tuesday of a $1 trillion infrastructure bill.

"Fiscal policies should work in tandem with monetary tapering to support gold because both suggest inflationary pressures ahead," Wyckoff said.

Elsewhere, silver fell 1.6% to $23.14 per ounce.

"Silver's investment demand is projected to rise in the second half of 2021, along with an expected increase in industrial demand, led by growing solar panel capacity which is likely to exceed 150 Gigawatts globally in 2021," Michael DiRienzo, executive director of Silver Institute, said.

Platinum was up 0.2% at $1,019.30 and palladium dropped 0.2% to $2,631.69.