BENGALURU: Gold crept higher for a third consecutive session on Thursday as growing tensions in the Middle East sparked safe-haven demand, while remarks from Federal Reserve Chair Jerome Powell fuelled hopes the US central bank may pause rate hikes.

Spot gold rose 1.1% to $1,967.70 per ounce by 1:27 p.m. ET (1727 GMT). US gold futures gained 0.6% to $1,980.60. Israel pounded Gaza with more air strikes, as British Prime Minister Rishi Sunak followed US President Joe Biden on visits to demonstrate support for the war against Hamas while urging Israel to ease the plight of besieged Gazans.

Gold prices have risen over $120 since the start of the Middle East conflict. But while gold has gained due to the war, “buying exhaustion is fairly imminent,” said Daniel Ghali, commodity strategist at TD Securities.

Powell said the recent rise in longer-term bond yields is tightening financial conditions as the central bank wants and could “at the margin” mean there is less need for the Fed to increase rates further.