It’s time to slow the pace of future interest rate hikes, US Federal Reserve Chairman Jerome Powell said on Wednesday.
Gold prices rose three dirhams per gram in the United Arab Emirates on Thursday morning after US Federal Reserve Chairman Jerome Powell hinted that interest rates would move lower in the coming months.
The price of 24K gold jumped to Dh215.5 per gram at the opening of markets on Thursday compared to last night’s close of Dh212.5.
The other variants also opened much higher in early trade.
According to data from Dubai Gold and Jewelery Group, 22K, 21K and 18K traded at Dh202.5, Dh193.25 and Dh165.5 per gram, respectively.
Spot gold rose 0.35 percent to $1,779.6 an ounce at 9:35 a.m. UAE time.
Powell said on Wednesday it was time to slow the pace of future interest rate hikes while signaling a prolonged economic adjustment to a world where borrowing costs will remain high, inflation is slowly falling and U.S. chronically short of workers.
Market participants now expect a 91 percent chance of a 50 basis point rate hike at the next US central bank meeting.
Lower interest rates tend to increase the attractiveness of bullion as it lowers the opportunity cost of holding the unprofitable asset.