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Gold prices edged higher on Friday morning after falling about 1.7% on Thursday, marking their worst one-day performance in three months.
Long-term Fed rate hike expectations weighed on gold.
Spot gold was at $1,779.4 an ounce by 10:13 am UAE time, up 0.16%.
In the UAE, 22K gold prices fell below AED 200 per gram yesterday and opened Friday morning below the threshold, although prices rose slightly.
24K traded at Dh215.25 a gram, compared with last night’s close of Dh215.0 a gram, Dubai Gold and Jewelry Group data showed. The 22K, 21K and 18K opened at Dh199.5, Dh193.0 and Dh165.5 per gram, respectively.
The Federal Reserve raised interest rates by 50 basis points on Wednesday, as expected, but Fed Chairman Jerome Powell said the central bank will still raise rates next year even if the economy slides into recession.
Although gold has traditionally been considered a hedge against inflation and economic uncertainty, higher interest rates tend to reduce the appeal of gold because it increases the opportunity cost of holding the non-yielding metal.
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