Investing.com – Gold prices rose on Thursday morning in Asia as the U.S. dollar weakened on investors’ expectations of a slowdown in interest rate hikes.
The chairman of the U.S. Federal Reserve, Jerome Powell, said Wednesday that rates are “just below” the neutral level now.
Gold Futures for February delivery climbed 0.2% to $1,229.8 per troy ounce by 11:30PM ET (03:30 GMT), regaining some ground after closing at a two-week low on Wednesday.
“Interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy – that is, neither speeding up nor slowing down growth,” said Powell on Wednesday.
Powell’s comments helped drive the US dollar down. The U.S. dollar index, which tracks the greenback against a basket of six major currencies, fell 0.01% to 96.68.