Gold hits 2-week high on hopes of smaller U.S. rate hikes

Gold touched a two-week high on Thursday, supported by a weaker dollar after U.S. Federal Reserve Chair Jerome Powell’s speech sparked expectations of smaller interest rate hikes ahead, Reuters reported.
Spot gold XAU= rose 0.4% to $1,774.62 per ounce, as of 0241 GMT, and hit its highest level since Nov. 16. U.S. gold futures GCv1 climbed 1.6% to $1,788.70.
The dollar index .DXY inched 0.3% lower. A weaker greenback makes gold more attractive for overseas buyers.
Powell effectively confirmed that the Fed will slow its pace of tightening, prompting the U.S. dollar lower and gold higher, said City Index Analyst Matt Simpson.