Gold prices rose in early trading on Thursday after lower-than-expected US economic data raised hopes that the Federal Reserve would cut interest rates in September.
Update prices
Spot gold was up 0.3 percent at $2,362.10 an ounce by 0200 GMT, after hitting a near two-week high in the previous session. U.S. gold futures were little changed at $2,369.80.
U.S. data on Wednesday showed the economy is slowing. A separate report showed the number of Americans filing new claims for unemployment benefits rose last week, a sign of a slowing labor market.
Traders are now awaiting the US non-farm payrolls data, due out tomorrow, Friday.
The dollar fell, making the greenback-priced metal cheaper for holders of other currencies.
Markets now expect a 74 percent chance that the Fed will cut interest rates at its September meeting, according to the CME FedWatch tool.
Low interest rates reduce the opportunity cost of holding non-yielding gold.
Meanwhile, Federal Reserve officials acknowledged at their last meeting that the U.S. economy appeared to be slowing, but still advised a wait-and-see approach before committing to cutting interest rates, according to minutes of the June 11-12 meeting.
As for other precious metals, silver rose in spot transactions by 0.2 percent to $30.54 per ounce, and platinum increased by 0.5 percent to $1,002.28.
Palladium fell 0.6 percent to $1,023.23 an ounce after hitting its highest since mid-April in the previous session.
