Gold prices hit a five-week high Thursday, supported by a softer dollar, and safe-haven flows due to ongoing concerns over the Federal Reserve's independence.

Spot gold rose 0.4% to $3,410.82 per ounce at 1012 a.m. ET (14:12 GMT), its highest level since July 23.

U.S. December gold futures were up 0.6% at $3,468.30.

The dollar slipped 0.4%, making greenback-priced gold more affordable for overseas buyers.

"Gold has been climbing quietly but steadily higher for over a week due in part to rising concerns about Fed independence. Trump's pressure... is spurring unease that the FOMC could cut rates more quickly and keep them lower for longer, which is good for gold," said Tai Wong, an independent metals trader.

Markets are currently pricing in a more than 87% chance of a quarter-point rate cut at the Fed's September meeting, as per CME FedWatch tool.

Investors now await Friday's Personal Consumption Expenditures (PCE) data, a key inflation gauge for the U.S. central bank.

Non-yielding gold thrives in a low interest-rate environment and during times of economic uncertainty.

Federal Reserve Governor Lisa Cook filed a lawsuit claiming Trump has no power to remove her from office, setting up a legal battle that could reset long-established norms for the U.S. central bank's independence.

Meanwhile, the number of Americans filing new applications for jobless benefits fell last week, but tepid hiring could raise the unemployment rate to 4.3% in August.

Elsewhere, spot silver was up 1% at $38.97 per ounce, after touching its highest point since July 25 earlier today.

"Silver has had a great quarter but momentum slumped in August and it's waiting for a spark. Some think silver will take off like an antelope above $40. That might coincide with gold making new highs," said Wong.

Platinum slipped 0.1% to $1,346.51, while palladium climbed 1.1% to $1,103.70.