Gold rose more than 2% on Thursday as traders scaled back September rate hike expectations after Federal Reserve Governor Christopher Waller said he would support leaving interest rates unchanged if data continues to show inflation pressures moderating. m.

ET(1804 GMT), after touching its highest since August 28 earlier ‌in the ⁠session. S.

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central bank's next policy meeting. Traders now see about a 54% chance of a rate hike when policymakers meet on September 15 to 16, down from about 62% before Waller's comments.

[FEDWATCH]" I think ⁠traders at ‌the moment are looking at the Fed being less aggressive with rates," said Bob Haberkorn, senior market strategist at StoneX." More and ⁠more traders are coming around to the idea that (the Fed) could do one rate hike, but there probably isn't much more they can do with rates after that."

Lower Treasury yields added support to bullion by reducing the opportunity cost of holding non-yielding gold. S.

dollar also fell, making greenback-priced bullion more affordable for overseas buyers. S.

dollar index retreated from a nearly three-week peak, while Treasury yields eased from multi-year highs. [USD/] [US/]Although gold is typically seen as an inflation ⁠hedge, higher interest rates tend to diminish the non-yielding metal's appeal.

S. non-farm payrolls report due on Friday, followed by the August CPI and PPI inflation reports next week.

S. strikes on Iran and renewed Israeli threats against Tehran revived concerns about disruptions to Middle East supplies.

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