Gold has steadied in Thursday trading, after pushing back above the $1300 line a day earlier. In the European session, the spot price is at $1305.12. On the release front, it's a busy schedule in the US, with three major events - Core CPI, Unemployment Claims and the Philly Fed Manufacturing Index. As well, Federal Reserve chair Janet Yellen will speak at an event in Washington. The crisis in Ukraine remains in the headlines, as pro-Russian separatists held referendums on Sunday and declared self-rule after the vote. The Ukraine government denounced the referendums as illegal and European countries have threatened further sanctions against Russia. However, sanctions have been limited so far, as Europe is dependent on Russia for energy supplies. Elections scheduled in Ukraine on May 25th remain in jeopardy and there are mounting fears that the country could slide into civil war, as fighting continues between government and separatist forces. In an ominous development, Russian Foreign Minister Sergei Lavrov warned that Ukraine was “as close to civil war as you can get". Low inflation levels have also been a persistent problem in the US, and Fed chair Yellen highlighted this issue when speaking before Congress last week. Inflation levels are nowhere near the Fed's target of 2.0%, and weak inflation is a sign of an underperforming US economy. There was good news on Wednesday as PPI, a key inflation indicator, edged higher in April, coming in at 0.6%. This easily beat the estimate of 0.2%. Core PPI also beat the estimate, posting a gain of 0.5%. We'll see if Core CPI can follow suit and beat the estimate later on Wednesday.

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