Gold prices rose in early trade on Tuesday after falling about 1% in the previous session, as US Federal Reserve officials signaled that interest rates they would keep high to reduce inflation.
Spot gold was up 0.6 percent at $1,753.22 an ounce by 9:30 a.m. UAE time.
In the United Arab Emirates, the price of 24K gold was steady at Dh212.25 per gram as markets opened on Tuesday. While 22K, 21K and 18K traded slightly higher at Dh199.5, Dh190.25 and Dh163.25 per gram, respectively.
The precious metal had hit a one-week high on Monday before closing lower for the first time in five sessions.
New York Federal Reserve President John Williams said Monday that the U.S. central bank must push ahead with rate hikes, although he sees a rate cut in 2024 as likely as reduce inflationary pressures.
James Bullard, president of the Federal Reserve in St. Louis, said the Fed needs to raise interest rates a bit more and then keep them on hold through next year and into 2024 to control inflation.
Investors now await remarks from Fed Chairman Jerome Powell, who is due to speak at a Brookings Institution event on Wednesday.
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