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Gold prices hovered near two-week highs on Thursday, lifted by a retreat in the U.S. dollar and Treasury yields as investors waited to see what interest rate signals the U.S. Federal Reserve could send at its annual Jackson Hole meeting.

FUNDAMENTALS

* Spot gold was up 0.2% at $1,917.50 per ounce by 0124 GMT, close to its highest level since Aug. 11 hit on Wednesday. U.S. gold futures were little changed at$1,945.80.

* The Federal Reserve is holding its annual symposium in Jackson Hole, Wyoming, from Aug. 24-26, with the focus on Chair Jerome Powell's speech on Friday.

* The dollar nursed a sharp pullback against Asian currencies, after softer-than-expected global economic data muddied the interest rate outlook and pushed down U.S. yields.[USD/] [US/]

* U.S. business activity approached the stagnation point in August, with growth at its weakest since February as demand for new business in the vast services sector contracted.

* The interest rate on the most popular U.S. home loan last week shot to its highest since December 2000, a survey showed on Wednesday.

* Traders on Wednesday firmed up bets that the European Central Bank would pause hiking rates in September, as sharp contractions in business activity pointed to deepening economic pain.

* Britain's economy is slowing and might be heading for a recession as it feels the impact of 14 back-to-back rate increases by the Bank of England to fight high inflation.

* Some of Mali's top gold producers said a new law to allow the military-led government to increase its ownership of mines should not apply to existing operations, but analysts said it was likely to deter future investment.

* In other metals, spot silver fell 0.2% to $24.27 per ounce and platinum eased 0.1% to $928.77. Palladium was up 0.1% at $1,275.59.

DATA/EVENTS (GMT)

1230 US Durable Goods July

1230 US Initial Jobless Clm Weekly