United Arab Emirates Gold price today: Gold rises, according to FXStreet data
Gold prices rose in United Arab Emirates on Monday, according to data compiled by FXStreet.
The price for Gold stood at 384.46 United Arab Emirates Dirhams (AED) per gram, up compared with the AED 382.67 it cost on Friday.
The price for Gold increased to AED 4,484.31 per tola from AED 4,463.35 per tola on friday.
| Unit measure | Gold Price in AED |
|---|---|
| 1 Gram | 384.46 |
| 10 Grams | 3,844.63 |
| Tola | 4,484.31 |
| Troy Ounce | 11,958.16 |
Daily Digest Market Movers: Gold price attracts some safe-haven flows amid rising geopolitical tensions
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In an interview broadcast on Sunday, Russian President Vladimir Putin stated that Russia has the means and strength to bring the Ukraine conflict to a logical conclusion. This comes ahead of Putin's unilaterally declared three-day ceasefire over May 8-10. Russia, however, had dismissed proposals from Ukraine and the US for an unconditional 30-day ceasefire.
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Israeli Prime Minister Benjamin Netanyahu promised to respond to Yemen’s Houthi rebels ballistic missile attack that hit Ben Gurion International Airport on Sunday and added that Iran would also face consequences from the strike. Responding to this, Iran’s Defence Minister Aziz Nasirzadeh said that Tehran would strike back if the US or Israel attacked.
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US President Donald Trump on Sunday announced a 100% tariff on all movies produced in foreign countries. His unpredictable trade stance unsettles investors, driving safe-haven flows that help gold extend its rebound from last week's low near the $3,200 round figure.
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Traders trimmed bets that the Federal Reserve will cut rates as soon as in June following the better-than-expected release of the US jobs data on Friday, which showed that the economy added 177K jobs in April against 130K expected. Additional details revealed that the Unemployment Rate held steady at 4.2%, pointing to a still resilient US labor market.
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The US Dollar, however, struggles to attract any meaningful buyers and remains depressed below a multi-week high touched last Thursday amid heightened economic uncertainty on the back of Trump's tariffs. This lends additional support to the XAU/USD pair ahead of the highly-anticipated two-day FOMC policy meeting starting on Tuesday.
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Furthermore, speeches from influential Fed officials later this week will be scrutinized for insights into the future monetary policy trajectory and drive the USD demand. In the meantime, the US ISM Services PMI on Monday, which, along with trade-related developments and geopolitical headlines, could produce some impetus to the XAU/USD pair on Monday.
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
FXStreet
