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Gold prices inched higher during Europe's session on Thursday, as ongoing uncertainty surrounding Federal Reserve monetary policy and the U.S. election supported demand for safe-haven assets.

The near-term outlook for gold remains cloudy as a recent string of positive U.S. economic data combined with hawkish remarks from key Fed officials heightened expectations for an interest rate hike before the end of the year.

The U.S. central bank's next meeting is in November, but a rate hike ahead of the presidential election is seen as unlikely. Instead, traders are currently pricing in around a 78% chance of a rate hike at the Fed's December meeting, according to Investing.com's Fed Rate Monitor Tool.

Later on Thursday, market participants will parse the latest data on U.S. durable goods, jobless claims and pending home sales. U.S. third-quarter growth figures scheduled for release on Friday could provide further hints on the future path of monetary policy.

"Investors look to India for signs of increasing physical demand," analysts at Australia's ANZ bank said in a note on Thursday.

"While the Indian physical buying is supporting prices, the liquidation of longs last week has put some break on the upside movement and gold prices will stay within $1,260-$1,280 range for the time being," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.

Reference: Investing, Reuters