Gold prices rise post Powell’s comments

Gold prices rose today, Nov. 30, as investors evaluated the statements of Federal Reserve Chairman Jerome Powell, in conjunction with mounting concerns about the impact of the Omicron variant on the bank's monetary policy.

Powell explained in his pre-prepared testimony that the bank will continue to support the economy until the labor market improves and wages rise. But he warned of the recent rise in COVID-19 cases and the emergence of the new variant, considering this a threat to employment and economic activity and increased uncertainty about inflation.

These statements pushed the dollar index - which measures the performance of the US currency against a basket of six currencies – to fall 0.22% to reach 95.98 points.

Gold futures contracts for February delivery rose 0.4% to reach $1,793.9 per ounce at 10:38am Makkah time. Spot price for the yellow metal rose 0.3% to reach $1,791.3 per ounce.

Elsewhere, silver futures for March delivery rose 0.3% to reach $22.9 an ounce. Spot price for platinum delivery declined 1.1% to reach $954.5, while palladium gained 0.3% to reach $1,802.3 per ounce.