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Federal Reserve Chairman Jerome Powell said on Wednesday that now is the time to slow down the pace of upcoming rate hikes
Gold prices rose 3 dirhams per gram in the UAE on Thursday morning after US Federal Reserve Chairman Jerome Powell hinted at smaller interest rate hikes in the coming months.
24K gold prices jumped to AED 215.5 per gram at the open on Thursday, compared with last night’s close of AED 212.5.
Other variants also opened sharply higher in early trade.
According to the Dubai Gold and Jewelry Group, 22K, 21K and 18K traded at Dh202.5, Dh193.25 and Dh165.5 per gram, respectively.
Spot gold was up 0.35% at $1,779.6 an ounce by 9:35 am UAE time.
Powell said on Wednesday that now was the time to slow down the pace of upcoming rate hikes, while also signaling a long-term economic adjustment in a world where borrowing costs will remain high, inflation will slowly decline and the U.S. remains chronically short of workers.
Market participants are currently pricing in a 91 percent chance that the Fed will raise rates by 50 basis points at its upcoming December meeting.
Lower interest rates tend to make bullion more attractive because it reduces the opportunity cost of holding non-yielding assets.
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