Global gold prices rose for the third consecutive session on Thursday, as investors awaited US inflation data due later in the day for further clues on the Federal Reserve's interest rate path.
The dollar fell, making the greenback-priced yellow metal more attractive to holders of other currencies.
Investors are awaiting the June CPI report due at 15:30 Riyadh time and the PPI report on Friday, expecting the data to add to optimism that the Federal Reserve will be able to cut interest rates this year.
Any downside surprise in the CPI report could weaken the dollar and push gold prices to $2,400, said Edward Meir, an analyst at Marks.
Meanwhile, Federal Reserve Governor Lisa Cook said on Wednesday that inflation in the United States should continue to decline without another significant increase in the unemployment rate.
We will not see lows in gold like we have seen in the past. Another record high could be achieved this year if we are hit by a geopolitical shock, Meyer added.
Gold is considered a hedge against geopolitical turmoil and the appeal of the non-yielding metal tends to shine when interest rates are low.
Powell's remarks
Meanwhile, Federal Reserve Chairman Jerome Powell said on Wednesday that the U.S. central bank will make interest rate decisions when and where they are needed, and on Tuesday he told lawmakers that more good data would strengthen the case for a rate cut.
Powell stressed that the US economy is heading towards a soft landing, adding: There is a path back to full price stability while keeping the unemployment rate low. We are working on that, and we are very focused on staying on that path.
Traders currently estimate a 46% chance that the Fed will cut rates by two notches by the end of its December meeting and a 73% chance of the first cut in September, according to the US Rate Tracker tool available on Investing Saudi Arabia.
Gold at settlement yesterday
Gold futures prices rose during trading on Wednesday, as the substance of Federal Reserve Chairman Jerome Powell's testimony before the House of Representatives was absorbed.
At settlement, gold futures for August delivery rose 0.5%, or $11.8, to $2,379.7 an ounce, extending the yellow metal's gains from the previous session.
Gold and dollar now
Gold futures are now up 0.23% at $2,385 an ounce.
While spot gold contracts rose by about 0.35% to $2,379 per ounce.
On the other hand, the dollar index fell by about 0.05% to 104.670 points.
Other minerals
Spot silver rose 0.4% to $30.94 an ounce, platinum rose 0.2% to $991.80 and palladium gained 0.6% to $992.30.
