Gold prices climbed to a two-week high on Thursday as U.S. Federal Reserve Chair Jerome Powell opened the door to cutting interest rates as early as September.

Gold prices climbed to a two-week high on Thursday as U.S. Federal Reserve Chair Jerome Powell opened the door to cutting interest rates as early as September.

Spot gold was steady at $2,448.38 per ounce, as of 0217 GMT, after hitting its highest level since July 18 earlier in the session. Prices were just about $35 shy of the record high of $2483.60 scaled on July 17.

U.S. gold futures firmed 0.8% to $2,492.50.

"Gold bulls couldn't resist the urge to buy more gold after the Fed effectively signaled the beginning of its rate-cut cycle. But gold bugs may want to warrant some caution above $2,500, given gold's reluctance to hold on to gains around these levels," City Index senior analyst Matt Simpson said.

Fed Chair Jerome Powell said on Wednesday rates could be cut as soon as September if the U.S. economy follows its expected path, putting the central bank near the end of a more than two-year battle against inflation but square in the middle of the nation's presidential election campaign.

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