Dubai: Gold prices inch higher after Fed rate hike

Gold prices edged higher in Dubai on Thursday morning after the US Federal Reserve raised interest rates by an expected 25 basis points, and signalled it was on the verge of pausing future hikes, given the recent turmoil in the financial sector.

Spot gold was up 0.34 per cent at $1,976.4 per ounce, as of 9.30 am UAE time.

The precious metal prices inched higher in the UAE in line with the global rates on Thursday. According to Dubai Jewellery Group data, the 24K opened higher at Dh239.5 per gram on Thursday morning, as compared to last night’s close of Dh239.25. Meanwhile, 22K, 21K and 18K were trading at Dh221.75, Dh214.75 and Dh184.0 per gram, respectively.

The yellow metal prices jumped two per cent on Wednesday after the Fed raised interest rates, but indicated it might pause further increases in borrowing costs after the recent collapse of two US banks.

• US Fed announces rate hike of 25 basis points