US payrolls data due on Friday
Geopolitics increasingly more supportive for gold analyst
Aug 1Reuters Gold prices hit a twoweek high on Thursday as U.S. Federal Reserve Chair Jerome Powell opened the door to cutting interest rates as early as September.
Spot gold was little changed at 2,445.39 per ounce, as of 0650 GMT, after hitting its highest since July 18 earlier in the session. Prices were just 38 shy of the record high of 2,483.60 scaled on July 17.
U.S. gold futures firmed 0.7 to 2,490.10.
The trend for gold remains bullish and prices should hit 2,500 this year as the Fed lowers interest rates, said Peter Fung, head of dealing at Wing Fung Precious Metals.
Fed Chair Jerome Powell said on Wednesday rates could be cut as soon as September if the U.S. economy follows its expected path, putting the central bank near the end of a more than twoyear battle against inflation.
Zeroyield gold tends to thrive in a low interest rate environment.
Gold bugs may want to warrant some caution above 2,500, given gold39;s reluctance to hold onto gains around these levels, City Index senior analyst Matt Simpson said.
Market focus shifts to Friday39;s U.S. payrolls report.
If the data comes in much hotter than expected, that could dent gold as we head towards the weekend, Simpson added.
Elsewhere, Hamas leader Ismail Haniyeh was assassinated in the Iranian capital Tehran early on Wednesday morning, an attack that drew threats of revenge on Israel and fuelled further…