Gold prices edged higher on Thursday and the dollar weakened, as investors looked forward to Fed Chair Jerome Powell's speech on Friday at the central banking conference in Jackson Hole for further cues on the monetary policy outlook.
Spot gold jumped 0.7 percent to $1,764.39 per barrel, while U.S. gold futures were up 0.9 percent at $1,777.70.
Powell is widely expected to reiterate the central bank's hawkish stance, given the expectations that inflation in the U.S. will be persistent and it will take time to contain it.
The dollar ticked lower while benchmark U.S. 10-year Treasury yields held near multi-week highs hit in the previous session ahead of U.S. GDP data for the second quarter and weekly jobless claims for the week ended August 20 due in the New York session.
The German economy expanded in the second quarter, beating the initial estimates, data released by Destatis showed earlier today.
Gross domestic product grew 0.1 percent sequentially, in contrast to the flat growth estimated on July 29, underpinned by household and government spending.
Germany's Ifo business confidence fell in August but topped expectations.
The European Central Bank releases the accounts of the monetary policy meeting of the governing council held on July 20 and 21 at 7.30 am ET.
