United Arab Emirates Gold price today: Gold rises, according to FXStreet data
Gold prices rose in United Arab Emirates on Wednesday, according to data compiled by FXStreet.
The price for Gold stood at 392.10 United Arab Emirates Dirhams (AED) per gram, up compared with the AED 391.55 it cost on Tuesday.
The price for Gold increased to AED 4,573.33 per tola from AED 4,566.93 per tola a day earlier.
| Unit measure | Gold Price in AED |
|---|---|
| 1 Gram | 392.10 |
| 10 Grams | 3,921.04 |
| Tola | 4,573.33 |
| Troy Ounce | 12,195.60 |
Daily Digest Market Movers: Gold bears have the upper hand amid firmer USD; hopes for Russia-Ukraine peace deal
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Traders continue to price out the possibility of a jumbo interest rate cut by the Federal Reserve in September, pushing the US Dollar to its highest level in more than a week and dragging the Gold price to a three-week low on Wednesday. This follows last Thursday's release of hotter US Producer Price Index, which rose in July at the fastest monthly pace since 2022 and indicated a gain of momentum in price pressures.
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Diplomatic efforts to end the protracted Russia-Ukraine war picked up pace this week and further seem to undermine the safe-haven bullion. In fact, White House press secretary Karoline Leavitt said on Tuesday that plans for a bilateral meeting between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky are underway. Earlier, US President Donald Trump hosted Zelenskyy, the EU, and UK leaders for talks.
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Zelenskiy described the summit as a "major step forward" towards ending Europe's deadliest conflict in 80 years and praised the White House for setting up a trilateral meeting with Putin and Trump. Meanwhile, Trump ruled out deploying ground troops to Ukraine but suggested air support could be part of a deal to end the war in the region. Russia, on the other hand, launched 270 drones and 10 missiles at Ukraine.
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Minutes of the Fed's July policy meeting will be released later today. This, along with Fed Chair Jerome Powell's speech at the Jackson Hole Symposium, could offer more insights into the central bank's policy stance. According to the CME Group's FedWatch Tool, traders are pricing in a greater chance that the Fed will start its rate-cutting cycle in September and lower borrowing costs by 25 basis points twice by the year-end.
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Meanwhile, Trump once again criticized Powell on Tuesday for being too late in cutting rates and demanded that the Fed lower borrowing costs immediately. Trump claimed that Powell’s unwillingness to cut rates now stood to hurt the housing market. Powell, however, has remained largely non-committed towards any future rate cuts despite increasing political pressure from the Trump administration.
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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