Gold firms on Mideast conflict

Gold crept higher for a third consecutive session on Thursday as growing tensions in the Middle East sparked safe-haven demand, while investors strapped in for US Federal Reserve Chair Jerome Powell's speech later in the day, reports Reuters.

Spot gold rose 0.3 per cent to $1,952.86 per ounce by 9:25 a.m. ET (1325 GMT) after hitting its highest since Aug. 1 in the previous session. US gold futures eased 0.2 per cent to $1,965.00.

Israel pounded Gaza with more air strikes, as British Prime Minister Rishi Sunak followed U.S. President Joe Biden on visits to demonstrate support for the war against Hamas while urging Israel to ease the plight of besieged Gazans.

Gold prices have risen nearly $120 since the start of the Middle East conflict.

But while gold has gained due to the war, "buying exhaustion is fairly imminent," said Daniel Ghali, commodity strategist at TD Securities, adding prices should consolidate around the $1,950 range in the near term.

Fed Chair Powell will take the podium at the Economic Club of New York, with his colleagues at the U.S. central bank in apparent agreement to hold interest rates unchanged at their next meeting in two weeks.

Markets are pricing in around a 94 per cent chance the Fed will leave interest rates unchanged, according to the CME FedWatch tool.

"Any signs of deteriorating data in the U.S. is required to get discretionary interest into the precious metal, which has been a large missing piece. Recession would allow Fed to cut rates and help prices move north of $2,100," Ghali added.