United Arab Emirates Gold price today: Gold rises, according to FXStreet data
Gold prices rose in United Arab Emirates on Tuesday, according to data compiled by FXStreet.
The price for Gold stood at 469.49 United Arab Emirates Dirhams (AED) per gram, up compared with the AED 467.59 it cost on Monday.
The price for Gold increased to AED 5,476.04 per tola from AED 5,453.89 per tola a day earlier.
| Unit measure | Gold Price in AED |
|---|---|
| 1 Gram | 469.49 |
| 10 Grams | 4,694.90 |
| Tola | 5,476.04 |
| Troy Ounce | 14,602.78 |
Daily Digest Market Movers: Gold bulls retain control amid a supportive fundamental backdrop
The US Dollar regains some positive traction following the previous day's late pullback from the vicinity of the late September swing high and keeps a lid on the precious metal's Asian session uptick to a fresh all-time high. The Nasdaq and the S&P 500 registered fresh record closing highs on Monday ahead of third-quarter earnings next week, which further contributes to capping the safe-haven Gold amid still overbought conditions.
Traders have been pricing in the possibility of two more interest rate cuts by the US Federal Reserve this year, in October and December. The dovish outlook acts as a headwind for the USD and has been a key factor behind the recent record-setting run in the non-yielding yellow metal. Apart from this, concerns that a prolonged US government shutdown could potentially disrupt economic activity continue to lend support to the commodity.
The US federal government remained shuttered for the sixth day on Monday, with the Senate struggling to reach consensus on a Republican-backed spending bill amid calls for the continuation of healthcare subsidies. US President Donald Trump said he was open to working with the Democrats on healthcare, but only if the government was allowed to reopen. Any furloughing of federal workers presents risks for the labor market and caps the USD.
Ukraine said its long-range drones struck a major ammunition plant, an oil terminal, and a weapons depot deep inside Russian territory. The International Atomic Energy Agency reported on Monday that its team heard multiple rounds of incoming and outgoing shelling near Ukraine’s Zaporizhzhia nuclear power plant. Ukraine's President Volodymyr Zelenskyy accused the West of zero real reaction to Russia’s escalating bombing campaign.
The first day of indirect talks between Israel and Hamas in Egypt, centered around Trump’s 20-point Gaza peace plan, ended on a positive note. The proposed peace initiative outlines a multi-phase roadmap, starting with a ceasefire and the release of all remaining hostages held by Hamas, and has gained broad international support. In exchange, Israel would release Palestinian prisoners. According to reports, the discussion will continue on Tuesday.
Nevertheless, geopolitical risks remain in play, which should further contribute to limiting any corrective pullback in the safe-haven commodity. Traders now look forward to speeches from influential FOMC members, including Fed Chair Jerome Powell's appearance on Thursday. Apart from this, FOMC Minutes on Wednesday could offer more cues on interest rate cuts, which would drive the USD and 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.
(An automation tool was used in creating this post.)
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FXStreet Team
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