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Gold slipped on Thursday after rising nearly 1 percent in the previous session, as the dollar firmed and Asian stocks stayed near eight-month highs on expectations of an interest rate hike by the Bank of England.

Investors bet the BoE will cut interest rates for the first time in more than seven years to ward off recession following Britain's vote to leave the European Union.

"Despite our near-term views that gold may correct further, we believe any losses may be limited and further declines well-bid," HSBC analyst James Steel said in a note.

The central bank is expected to halve its benchmark interest rate to a record low of 0.25 percent when it makes a monthly policy statement at 1100 GMT later in the day.

"The market has been a little quiet and is just waiting for the Bank of England rates," said William Wong, assistant head of dealing for Wing Fung's precious metals desk.

Some risk appetite returned to equity markets this week amid speculation of further stimulus from governments and central banks.

"Gold's consolidation earlier this week was not unexpected, especially in the face of a risk rally that is all about expected central-bank largesse, rather than improving fundamentals," Jordan Eliseo, Sydney-based chief economist at trader Australian Bullion Co, said by e-mail.

"With the BOE and the BOJ likely to implement further easing measures in due course, we expect gold to remain well bid."

Reference: CNBC, Reuters, Business Times