2024.04.1810:05:00UTC+00Gold Gains On Dollar Weakness

Gold prices traded higher on Thursday on the back of a weaker dollar and reports about strong central bank purchases. Rising geopolitical tensions in the Middle East also offered some support.

Spot gold jumped 0.8 percent to $2,380.85 per ounce while U.S. gold futures were up 0.3 percent at $2,395.30.

The dollar index fell for a second straight session despite ongoing concerns about the outlook for interest rates following remarks by Federal Reserve Chair Jerome Powell.

After Powell threw cold water on rate-cut bets, traders now expect just one or two rate cuts this year, down from forecasts for six or more at the start of the year, according to data from CME Group.

Federal Reserve Bank of Cleveland President Loretta Mester said on Wednesday that inflation is higher than expected and the U.S. central bank should not lower interest rates in a hurry.

Geopolitical tensions persisted and there are fears that the conflict could worsen and spread beyond Gaza if Israel responds brutally to Iran.

According to The Times, Israel's Prime Minister Benjamin Netanyahu has clarified that "their state will do everything necessary to defend itself."

The release of U.S. reports on weekly jobless claims, existing home sales and Philadelphia-area manufacturing activity may sway investor sentiment in the New York session.