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Prices of safe-haven gold edged higher on Thursday, supported by Middle East tensions and optimism surrounding U.S. rate cuts, while traders awaited economic data for clues on the Federal Reserve's policy trajectory.

Spot gold was up 0.3% at $2,389.42 per ounce, as of 0331 GMT. U.S. gold futures slipped 0.2% to $2,428.40.

Longer-term fundamentals look supportive for gold, which include geopolitical tensions in the Middle East and the downward trajectory of the U.S. treasury yields, said Kelvin Wong, OANDA's senior market analyst for Asia Pacific.

Iran will not stay quiet over aggression, President Masoud Pezeshkian told French counterpart Emmanuel Macron according to state media, amid fears of more regional conflict after the killing of Hamas leader in Tehran last week.

The benchmark 10-year Treasury yield slipped, making non-yielding bullion more attractive. While U.S. dollar also edged lower. [US/][USD/]

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 surprisingly weak U.S. employment report for July.

Lower interest rates reduce the opportunity cost of holding non-yielding bullion.

Market focus will be on initial U.S. jobless claims data due at 1230 GMT, while Richmond Fed President Tom Barkin is also expected to speak later in the day.

"In the near-term, I think market will consolidate around $2,350 level and move towards $2,500 later this year," said Peter Fung, head of dealing at Wing Fung Precious Metals.

China's central bank held back on buying gold for its reserves for a third straight month in July, according to data.

Spot silver rose nearly 1% to $26.84 per ounce, platinum edged 0.1% up to $920.40 and palladium gained 1.2% to $892.75.

Impala Platinum on Wednesday flagged $1 billion of impairments amid lower value of its assets as metal prices plunged.