Gold touches 2-week high

Gold prices hit a two-week high on Thursday after recent weak U.S. economic data raised market expectations of interest rate cuts from the Federal Reserve later this year, while uncertainty around multiple elections globally also lent support, reports Reuters.

Spot gold was up 0.5 per cent at $2,340.12 per ounce as of 1137 GMT, after hitting its highest since June 7 earlier in the session. US gold futures rose 0.3 per cent to $2,353.70.

"Gold remains primarily driven by market expectations surrounding the Fed's policy pivot. It may well remain rangebound for a while, until US economic data can pave the way for lower interest rates and trigger the next leg up for gold," Han Tan, chief market analyst at Exinity Group, said.

Last week's data showed a moderation in the labour market and price pressures, followed up with soft retail sales data on Tuesday, suggesting that economic activity remained lacklustre in the second quarter.

The Fed is looking for further confirmation that inflation is cooling as it steers cautiously towards what most expect to be a rate cut or two by the end of this year.

Lower interest rates reduce the opportunity cost of holding non-yielding bullion.

Additionally, gold was buoyed by safe-haven bids on persistent geopolitical tensions, downside economic risks, and the uncertainty surrounding French politics.

Last week, France's president called a snap election, with its high debt levels a source of concern for market participants.

Spot silver rose 1.7 per cent to $30.26 per ounce, platinum was up 0.6 per cent at $985.81 and palladium gained 0.9 per cent to $913.00.