Investing.com - Gold futures were higher in North American trade on Thursday, on track to halt a six-day losing streak as the U.S. dollar pulled back from recent highs.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
The dollar index fell 0.45% to 94.97, moving away from a two-month high of 95.66 notched in the previous session, as traders looked ahead to comments from Federal Reserve Chair Janet Yellen for further hints on the timing of a U.S. rate hike.
Yellen is due to deliver comments at a Harvard University event on Friday. She could use her speech to reinforce expectations that the central bank might raise interest rates as early as next month.
Odds of a Fed rate hike for June stood at nearly 35% Thursday morning, according to futures markets. July odds were at about 60%.
Data released earlier showed that the number of Americans filing for unemployment benefits fell more than expected last week, while orders for long-lasting U.S. manufactured goods surged in April on strong demand for transportation equipment and a range of other products.
Gold for June delivery on the Comex division of the New York Mercantile Exchange tacked on $5.45, or 0.45%, to trade at $1,229.25 a troy ounce by 13:35GMT, or 9:35AM ET.
On Wednesday, gold sank to an intraday low of $1,217.70, a level not seen since April 6, as investors continued to factor in an increased chance of a near-term U.S. interest rate rise.
Gold futures are down more than 5% so far in May as recent comments from Fed officials as well as minutes of the Fed's April meeting have convinced many analysts and investors that a rate hike in June or July is a real possibility.
Elsewhere on the Comex, silver futures for July delivery rose 25.9 cents, or 1.59%, to trade at $16.52 a troy ounce during morning hours in New York, while copper futures inched up 1.2 cents, or 0.59%, to $2.114 a pound.