‘Swift’ drop in gold prices as US interest rate increases

AMMAN — An interest rate hike by the US Federal Reserve on Wednesday caused a "swift" drop in gold prices globally, said Jordan Jewellers Association (JJA) President Osama Imseeh.

"The increase in the US dollar interest rate is low, estimated at a quarter of a point, which means that it will be more expensive to mold gold," he told The Jordan Times on Thursday. 

Until Wednesday evening, the price of one ounce of gold reached up to $1,277, but news about the interest rate hike caused the price to drop to $1,263 an ounce, according to Imseeh. 

He noted that the local sale and purchase prices for 24-karat gold on Thursday were JD28 and JD30.7 per gramme; JD24 and JD25.8 for 21-karat; and JD20.5 and JD22.9 for 18-karat.

According to the JJA, demand for gold usually increases after the end of Ramadan and Eid Al Fitr, marking the return of expatriates and the start of the wedding season.  

In previous remarks, Imseeh noted that the gold market usually witnesses a "slow" turnover during the holy month of Ramadan, when the priority is spending on food, but the demand goes up again in the last week of the fasting month, especially ahead of the wedding season.