United Arab Emirates Gold price today: Gold rises, according to FXStreet data
Gold prices rose in United Arab Emirates on Thursday, according to data compiled by FXStreet.
The price for Gold stood at 499.57 United Arab Emirates Dirhams (AED) per gram, up compared with the AED 496.86 it cost on Wednesday.
The price for Gold increased to AED 5,826.83 per tola from AED 5,795.24 per tola a day earlier.
| Unit measure | Gold Price in AED |
|---|---|
| 1 Gram | 499.57 |
| 10 Grams | 4,995.66 |
| Tola | 5,826.83 |
| Troy Ounce | 15,536.62 |
Daily Digest Market Movers: Gold remains well supported by global flight to safety, dovish Fed, weaker USD
The partial federal government shutdown has extended into a third week, with no resolution in sight. The vote on the Republican-backed stopgap funding bill to reopen the government fell short of the votes needed for passage in the Senate for the ninth time on Wednesday.
Investors seem worried that a prolonged US government closure would affect the economic performance. A Treasury official said that the shutdown may cost the US economy $15 billion a week in lost output, correcting an earlier statement from Treasury Secretary Scott Bessent.
U.S.-China trade tensions escalated further after both sides imposed tit-for-tat port fees this week. Adding to this, US President Donald Trump said that he was considering terminating the cooking oil trade with China in retaliation to the latter's refusal to purchase American soybeans.
Trump said that he saw the US as locked in an all-out trade war with China. However, US Treasury Secretary Scott Bessent proposed a pause of import duties on Chinese goods for longer than three months if China halts its plan for strict export controls on rare-earth elements.
On the geopolitical front, US Defense Secretary Pete Hegseth warned Russia of possible costs for its continued aggression if the war in Ukraine does not come to an end. Moreover, Trump had said that he is considering providing Ukraine with longer-range Tomahawk cruise missiles.
US Federal Reserve Chair Jerome Powell struck a dovish tone on Tuesday, saying that the labor market remained mired in its low-hiring, low-firing doldrums through September. This reaffirms market bets for a 25-basis-point Fed rate cut at each of the October and December meetings.
The US Dollar prolongs its downtrend for the third straight day and drops to an over one-week low during the Asian session on Thursday. This contributes to an extension of the recent record-setting run in the Gold price and backs the case for a further near-term appreciating move.
In the absence of any major market-moving economic releases, speeches from a slew of influential FOMC members will be scrutinized for rate-cut cues. This will play a key role in driving the USD demand and providing some meaningful impetus to the non-yielding yellow metal.
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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