Gold firms on Middle East tensions; Fed's Powell speech in focus
Gold prices edged higher on Thursday to hover near a 2-1/2-month high as escalating Middle East turmoil lifted demand for the safe-haven asset, while investors looked forward to U.S. Federal Reserve Chair Jerome Powell's speech due later in the day.
FUNDAMENTALS
* Spot gold was up 0.2% at $1,950.83 per ounce by 0127 GMT, after hitting its highest since Aug. 1 on Tuesday.
U.S. gold futures eased 0.3% to $1,962.90.
* A blast on Tuesday at a Gaza hospital killed hundreds of Palestinians just before U.S. President Joe Biden visited Israel as the conflict between the Israeli military and the Hamas militant group raged.
* Gold, often used as a safe store of value during times of political and financial uncertainty, has risen nearly $140 or 8% since falling to a seven-month low on Oct.
06.
* Market focus will be on Powell's speech to the Economic Club of New York for more cues on the U.S. interest rate path after recent dovish comments from several Fed officials.
* The Fed will keep its key interest rate on hold on Nov.
1 and may wait longer than previously thought before cutting it, according to economists in a Reuters poll, as the U.S. central bank's higher-for-longer message gains traction.
* Fed Bank of New York President John Williams said interest rates will need to stay high for a while to get inflation back to the central bank's 2% target.
* Higher rates raise the opportunity cost of holding gold, which is priced in dollars and does not yield any interest.
* U.S.
