(Updates prices)
* U.S. weekly initial jobless claims at 1230 GMT
* Dollar hits a more than two-week trough
* Next key resistance for gold at $1,830-$1,840 - analystBy Arundhati SarkarJuly 29 (Reuters) - Gold gained for a third straight sessionon Thursday after U.S. Federal Reserve Chairman Jerome Powellstruck a dovish tone, indicating much remains to be done beforepolicy tightening begins, and as a softer dollar added supportto the metal.Spot gold rose 0.6% to $1,818.50 per ounce by 0703GMT. U.S. gold futures climbed 1% to $1,818.20.The Federal Reserve has talked down the risks of a rate hikeand tapering a little bit, and that gives gold prospects todrift higher in the short term, said Kyle Rhoda, an analyst atIG Market."The next key level of resistance will be in the range of$1,830-$1,840."Powell said the U.S. job market still had "some ground tocover" before it would be time to pull back support and that itwas "ways away" from considering interest rate hikes. Lower interest rates reduce the opportunity cost of holdingnon-yielding bullion.Investors will now turn their attention to the U.S. weeklyjobless claims data due at 1230 GMT.Powell's remarks sent the U.S. dollar index to a morethan two-week low. A weaker greenback makes gold cheaper forholders of other currencies. U.S. Treasury yields also fell after the Fed gave no detailson when it is likely to reduce bond purchases. "Rising monetary policy uncertainty, inflation andincreasing risk of equity market volatility should favour demandfor safe-haven assets," ANZ Research said in a note.Global demand for gold rose in the second quarter to itshighest quarterly level in a year as central banks and investorsstepped up purchases, the World Gold Council said in a
quarterly report. Among other precious metals, silver gained 1.6% at$25.33 per ounce, platinum rose 1% to $1,075.29, andpalladium was up 0.8% at $2,648.39.
(Reporting by Eileen Soreng and Arundhati Sarkar in Bengaluru;Editing by Amy Caren Daniel, Subhranshu Sahu and RamakrishnanM.)