United Arab Emirates Gold price today: Gold rises, according to FXStreet data
|Gold prices remained broadly unchanged in United Arab Emirates on Wednesday, according to data compiled by FXStreet.
The price for Gold stood at 417.57 United Arab Emirates Dirhams (AED) per gram, broadly stable compared with the AED 417.15 it cost on Tuesday.
The price for Gold was broadly steady at AED 4,870.39 per tola from AED 4,865.61 per tola a day earlier.
| Unit measure | Gold Price in AED |
|---|---|
| 1 Gram | 417.57 |
| 10 Grams | 4,175.64 |
| Tola | 4,870.39 |
| Troy Ounce | 12,987.83 |
Daily Digest Market Movers: Gold price bulls pause for a breather amid some follow-through USD uptick
According to the CME Group's FedWatch Tool, traders are pricing in an over 90% chance that the US Federal Reserve will lower borrowing costs by 25-basis-point at the end of the two-day policy meeting on September 17. Furthermore, market participants expect the central bank to deliver at least two rate cuts by the end of this year, which continues to boost the non-yielding Gold.
Meanwhile, US President Donald Trump has been exerting pressure on the Fed Chair Jerome Powell to cut interest rates. Apart from this, Trump's move to oust Fed Governor Lisa Cook amid alleged mortgage fraud raised concerns about the central bank's ability to function without political interference. This, along with trade uncertainties, lifts the XAU/USD to a fresh record high.
Trump on Tuesday said his administration will ask the Supreme Court for an expedited ruling on tariffs that a US appeals court found illegal last week. This adds another layer of uncertainty in the markets as the Supreme Court decision could radically change the macro landscape, which, in turn, is seen as another factor that offers additional support to the safe-haven precious metal.
Rising fiscal deficits, persistent inflation, and eroding central bank credibility continue to push global bond yields higher, fueling anxiety about government finances. This led to the overnight slump in the British Pound and the Japanese Yen, which assists the US Dollar to preserve its recovery gains and holds back the XAU/USD bulls from placing fresh bets amid overbought conditions.
Traders now look forward to the release of the US JOLTS Job Openings for short-term opportunities later today. This week's US economic docket also highlights the ADP report on private-sector employment and ISM Services PMI on Thursday. The focus, however, will remain glued to the closely-watched US Nonfarm Payrolls report on Friday, which should provide a fresh impetus to the XAU/USD pair.
FXStreet calculates Gold prices in United Arab Emirates by adapting international prices (USD/AED) to the local currency and measurement units. Prices are updated daily based on the market rates taken at the time of publication. Prices are just for reference and local rates could diverge slightly.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
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