Aug 8 (Reuters) - Gold prices firmed on Thursday as the dollar and Treasury yields retreated on rising bets that the U.S. interest rate cut cycle may start in September, while investors awaited the weekly jobless claims data.
Spot gold rose 1.2% to $2,410.69 per ounce by 1149 GMT, on track to snap a five-session losing streak. U.S. gold futures were up 0.7% at $2,450.40.
The dollar index fell 0.1%, making bullion more affordable for overseas buyers. The 10-year U.S. Treasury yield also slipped.
"Following Monday's deleveraging dump, gold has been stabilizing with the shallow correction providing investors with enough confidence to re-enter the market on the long side," said Ole Hansen, head of commodity strategy at Saxo Bank.
Prices fell as much as 3% on Monday, caught in a global sell-off driven by fears of a U.S. recession.
Continued U.S. data weakness and U.S. debt concerns will ultimately support gold prices, Hansen added.
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.
"Ultimately, gold should be able to post a new record high once nerves settle and markets have a firmer grip of the Fed’s policy pivot, and the ensuing pace of rate cuts." said Han Tan, chief market analyst at Exinity Group.
Bullion is considered a hedge against geopolitical and economic uncertainties and tends to thrive in a low-interest-rate environment.
The killing of senior members of militant groups Hamas and Hezbollah last week raised the possibility of retaliatory strikes by Iran against Israel.
Spot silver rose 1.5% to $27.02 per ounce, platinum was down 0.3% at $916.35 and palladium gained 0.6% to $887.75.
Reporting by Sherin Elizabeth Varghese and Daksh Grover in Bengaluru; Editing by Vijay Kishore
