Investing.com - Gold prices eased on Thursday, but remained supported near two-week highs as speculation over the future path of U.S. monetary policy continued.
Gold for December delivery on the Comex division of the New York Mercantile Exchange was last at $1,269.75 a troy ounce, off highs of $1,274.05.
On Wednesday, gold settled up 0.6% at $1,269.90, the highest close since October 3.
The precious metal was boosted after subdued U.S. inflation numbers for September dampened expectations that the Federal Reserve could raise interest rates at its December meeting.
But expectations for a December rate hike remain high. Markets are currently pricing in around a 64% chance of a December rate hike, according to Investing.com's Fed Rate Monitor Tool.
On Wednesday, New York Fed President William Dudley said the U.S. central bank will likely raise interest rates later this year if the economy remains on its current trajectory.
Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.
The U.S. dollar index, which measures the greenback's value against a basket of six major currencies, pushed higher, rising 0.13% to 98.00. Gold is priced in U.S. dollars and becomes cheaper to holders of other currencies when the dollar weakens.
Also on the Comex, silver futures for December delivery were at $17.65 a troy ounce during morning hours in London, while copper futures traded at $2.097 a pound.