Gold prices edged up on Wednesday morning, aided by a dip in the US dollar, with investors largely focusing on Federal Reserve Chair Jerome Powell's speech for insights into the US central bank's monetary policy path.

Spot gold was up 0.34 per cent at $1,754.9 per ounce, as of 9.20 am UAE time.

The precious metal prices rose in the UAE in line with global rates with 24K trading at Dh212.5 per gram, up by half a dirham from its last night’s close.

Among the other variants of the yellow metal, 22K opened at Dh199.75 per gram, 21K at Dh190.5 and 18K at Dh163.25.

Powell's speech at a Brookings Institution event, scheduled for 10.30pm UAE time, will be evaluated for any new clues on the US central bank's plans for rate hikes next year.

Craig Erlam, a senior market analyst at Oanda, said gold is rallying again on the back of a softer dollar.

“I expect to see plenty more volatility in the coming days given the amount of US economic data that [is] being released including inflation, GDP, and the jobs report.

That sets us up nicely as we move into the final month of the year with only a couple of weeks to go until the hotly anticipated CPI inflation report and Fed meeting,” said Erlam.

 

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