- Weekly jobless claims data due at 1230 GMT
- China's central bank held back buying for third straight month
- U.S. 10-year Treasury yields slip
Aug 8 (Reuters) - Gold prices gained on Thursday, snapping five sessions of losses, as Middle East tensions and optimism surrounding U.S. rate outlook supported safe-haven bullion, while traders awaited more clues on the Federal Reserve's policy trajectory.
Spot gold was up 0.8% at $2,399.50 per ounce, as of 0704 GMT. U.S. gold futures were up 0.2% at $2,437.80.
Longer-term fundamentals look supportive for gold, which include geopolitical tensions in the Middle East and the downward trajectory of the U.S. treasury yields, said Kelvin Wong, OANDA's senior market analyst for Asia Pacific.
Yields tumbled to more than one-year lows this week after Friday's surprisingly weak U.S. employment report for July.
Brokerages including J.P. Morgan, Citigroup and Wells Fargo have forecast a 50-basis-point interest rate cut by the Fed in September after last week's U.S. jobs data.
Market focus will be on weekly initial U.S. jobless claims data due at 1230 GMT, while Richmond Fed President Tom Barkin is also expected to speak later in the day.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion. Gold is also used a safe investment during uncertain times.
Iran will not stay quiet over aggression, President Masoud Pezeshkian told French counterpart Emmanuel Macron according to state media, amid fears of more regional conflict after the killing of Hamas leader in Tehran last week.
"In the near term, I think the market will consolidate around $2,350 level and move towards $2,500 later this year," said Peter Fung, head of dealing at Wing Fung Precious Metals.
Meanwhile, top bullion consumer China's central bank held back on buying gold for its reserves for a third straight month in July, according to data.
Spot silver rose 1.1% to $26.90 per ounce, platinum was up 0.7% at $925.80 and palladium gained 1.4% to $894.75.
Reporting by Daksh Grover and Ashitha Shivaprasad in Bengaluru; Editing by Varun H K and Sherry Jacob-Phillips
Source: Reuters