United Arab Emirates Gold price today: Gold falls, according to FXStreet data
Gold prices fell in United Arab Emirates on Friday, according to data compiled by FXStreet.
The price for Gold stood at 402.49 United Arab Emirates Dirhams (AED) per gram, down compared with the AED 403.44 it cost on Thursday.
The price for Gold decreased to AED 4,694.60 per tola from AED 4,705.68 per tola a day earlier.
| Unit measure | Gold Price in AED |
|---|---|
| 1 Gram | 402.49 |
| 10 Grams | 4,024.93 |
| Tola | 4,694.60 |
| Troy Ounce | 12,518.95 |
Daily Digest Market Movers: Gold falls ahead of key US PCE inflation data
"The precious metal remains a popular pick with investors ahead of what is expected to be a period of looser monetary policy in the U.S. starting next month," said KCM Trade chief market analyst, Tim Waterer.
Fed Governor Christopher Waller said on Thursday that he would support an interest-rate cut in the September meeting and further reductions over the next three to six months to prevent the labor market from collapsing, per Reuters.
The US GDP grew at an annual rate of 3.3% in Q2, compared to the initial estimate of 3.0%, the US Bureau of Economic Analysis (BEA) showed Thursday. This figure came in better than the estimation of 3.1%.
The US Initial Jobless Claims for the week ending August 23 declined to 229K versus 234K prior (revised from 235K). This reading came in below the market consensus of 230K.
New York Fed President John Williams said on Wednesday that it is likely interest rates can fall at some point, but policymakers will need to see what upcoming data indicate about the economy to decide if it is appropriate to make a cut next month.
Traders are currently pricing in nearly an 85% possibility of a quarter-point Fed rate cut next month, according to the CME FedWatch tool.
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.
(An automation tool was used in creating this post.)
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FXStreet Team
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