Gold is at its highest level in two weeks

Gold prices jumped to a two-week high in early Asian trade on Thursday after Federal Reserve Chairman Jerome Powell’s speech boosted expectations of a lower US interest rate hike.

By 0039 GMT, spot gold rose 0.4 percent to $1,775.77 an ounce, after touching its highest level since November 16.

US gold futures rose 1.7 percent to $1,788.90 an ounce.

Powell said on Wednesday that it is time to slow down the pace of the next hike in US interest rates.

Market participants now largely expect the US central bank at its next meeting in December to raise interest rates by 50 basis points.

Lower interest rates make the precious metal more attractive and lower the opportunity cost of holding non-interest-bearing gold. Gold ended November transactions, up by more than eight percent, which is the highest monthly rate of increase since July 2020.

Investors are now awaiting the US non-farm payroll data expected to be released by the Labor Department on Friday, which may influence monetary policy decisions.

As for other precious metals, silver increased in spot transactions by 0.3 percent, to $ 22.26 an ounce. Platinum rose 0.6% to $1,038.46 an ounce, while palladium rose 0.6% to $1,892.35 an ounce.