US GDP estimates, initial jobless claims due at 1230 GMT
Dollar rises to more than 2month high

May 25 Reuters Gold prices edged up on Thursday as investors waited for developments in drawnout debt ceiling negotiations in Washington, with gains in bullion capped by the U.S. dollar rising to a more than twomonth high.

Spot gold was 0.2 higher at 1,961.77 per ounce by 1155 GMT. U.S. gold futures eased 0.1 to 1,962.60.

With uncertainties around an 11thhour debt ceiling deal between Democratic President Joe Biden and top congressional Republican Kevin McCarthy, gold is seeing safehaven flows, said Peter Fertig, an analyst with Quantitative Commodity Research.

The White House and congressional Republicans are expected to resume negotiations on Thursday with as little as a week remaining until a potential economically catastrophic default.

Other markets were also stuck in debt ceiling limbo, with concerns that the wrangling in the United States could cost it an AAA credit rating.

Gold ended lower on Wednesday as minutes from the Federal Reserve39;s May meeting showed that policymakers generally agreed last month that the need for more interest rate increases had become less certain.

Markets were pricing in a 67 chance of unchanged rates next month, and a 33 chance of a 25basis points hike, the CME FedWatch tool showed.

Gold, a nonyielding asset, tends to lose appeal in a high interest rate environment.

Fed Governor Christopher Waller said the path ahead would depend…