People buying Gold jewellery in a shop during the Diwali festival called Dhanteras in Kolkata Image Credit: Agency

Dubai: UAE gold jewellery prices continued to soar on Wednesday, as the US dollar is experiencing a pullback amid dovish comments on interest rates.

The price of 24-karat (24K) gold climbed to its highest in months at Dh 162.50 per gram, up by Dh2.25 from Monday.

Retail rates for 22K, 21K and 18K also jumped to Dh152.75, Dh145.75 and Dh125 per gram, respectively.

Gold’s latest prices are said to be the highest in ten months. Spot gold was pegged at $1,346.73 an ounce, while the American currency index dropped to 96.495 against a basket of six currency peers.

Investors have turned cautious, as the US Federal Reserve’s policy meeting minutes are due to be released soon. There have been suggestions that the Fed will stop raisng interest rates this year.

Cleveland Federal Reserve President Loretta Mester had said that there won’t be no interest rate increases this year if inflation stays the same. Mester was part of the voting panel for the Federal Open Market Committee in 2018. (with inputs from Reuters)