* U.S. weekly jobless claims unexpectedly rise
* Markets eye Powell's speech at IMF conference
* Silver hits over two-week peak (New throughout, adds comments, updates prices)
By Sumita Layek
April 8 (Reuters) - Gold prices hit their highest level in more than a month on Thursday as the dollar and U.S. yields dropped and the Federal Reserve's reiteration of its dovish policy stance also lifted bullion's appeal.
Spot gold XAU= was up 1.1% at $1,756.93 per ounce by 1419 GMT, having earlier hit its highest since March 1 at $1,757.82. U.S. gold futures GCv1 gained 0.9% to $1,756.50.
"The dollar and U.S. yields are coming off and that's the key catalyst right now... a pretty unimpressive jobs number is also helping push gold higher," said Bob Haberkorn, senior market strategist, RJO Futures.
"And the fact that we're above $1,750, which is a key technical level, shows that gold has some legs to continue higher."
The dollar .DXY slipped to a more than two-week low, while benchmark Treasury yields eased, making gold more appealing compared with alternative investments like bonds.
New U.S. claims for unemployment benefits unexpectedly rose last week, data showed. further highlighted the Fed's commitment of supporting the economy until its recovery is more secure, minutes of the central bank's latest policy meeting showed on Wednesday. has been somewhat weak because people have been very optimistic about the economic recovery and the vaccinations resolving the pandemic and the Fed sort of reinforced the view that the pandemic is not over," said Jeffrey Christian, managing partner of CPM Group.
"There is a real race between the variants and the vaccinations, and right now the variants seem to have the upper hand on a global basis."
Market participants now await Fed Chair Jerome Powell's speech at a virtual International Monetary Fund conference later on Thursday.
Silver XAG= rose 1.4% to $25.47 per ounce, having hit a more than two-week peak of $25.60. Palladium XPD= added 0.5% to $2,635.61, while platinum XPT= was steady at $1,225.41.