01.12.202209:12:00UTC+00Gold Tops Two-week High On Powell's Dovish Speech

Gold prices traded at a two-week high on Thursday, supported by a weaker dollar after Federal Reserve Chair Jerome Powell reiterated that the U.S. central bank would moderate the pace of rate increases as soon as December.

Spot gold climbed 0.6 percent to $1,778.35 per ounce, while U.S. gold futures were up 1.8 percent at $1,791.85.

The dollar sank and Treasury yields declined after Powell struck a dovish tone on Wednesday at the Brookings Institution in Washington. "It makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down," Powell said.

"Given our progress in tightening policy, the timing of that moderation is far less significant than the questions of how much further we will need to raise rates to control inflation, and the length of time it will be necessary to hold policy at a restrictive level," Powell noted.

In economic releases, U.S. weekly jobless claims for the week ended November 26, ISM manufacturing index for November and personal income and spending data and construction spending for October will be out in the New York session.