United Arab Emirates Gold price today: Gold steadies, according to FXStreet data
Gold prices remained broadly unchanged in United Arab Emirates on Wednesday, according to data compiled by FXStreet.
The price for Gold stood at 392.80 United Arab Emirates Dirhams (AED) per gram, broadly stable compared with the AED 392.82 it cost on Tuesday.
The price for Gold was broadly steady at AED 4,581.49 per tola from AED 4,581.74 per tola a day earlier.
| Unit measure | Gold Price in AED |
|---|---|
| 1 Gram | 392.80 |
| 10 Grams | 3,927.95 |
| Tola | 4,581.49 |
| Troy Ounce | 12,217.42 |
Daily Digest Market Movers: Gold price traders opt to wait for cues about Fed’s rate-cut path
The US Dollar bulls take a brief pause following the recent sharp rally to over a one-month peak touched on Tuesday and ahead of the crucial FOMC monetary policy decision later this Wednesday. According to the CME Group's FedWatch Tool, traders are currently pricing in a 97% chance that the Federal Reserve will leave interest rates unchanged in the 4.25-4.50% range despite relentless pressure from US President Donald Trump.
Hence, the focus will remain glued to the accompanying monetary policy statement and Fed Chair Jerome Powell's comments during the post-meeting press conference. There is still a possibility of a more hawkish tone amid the upside risks to inflation from higher US tariffs. Investors, however, still expect the Fed to signal a rate cut in September. Nevertheless, the outlook will drive the USD and influence the non-yielding Gold price.
Heading into the key central bank event, traders will take cues from the US ADP report on private-sector employment amid signs of a slowdown in the labor market. In fact, the Job Openings and Labor Turnover Survey (JOLTS) published by the US Bureau of Labor Statistics on Tuesday showed that the number of job openings stood at 7.43 million in June, compared to May's downwardly revised print of 7.71 million and 7.55 million expected.
Separately, the Conference Board's Consumer Confidence Index rose to 97.2 in July from 95.2 the previous month, suggesting that consumers are feeling optimistic. This could translate into increased consumer spending and play a significant role in stimulating economic activity. Hence, investors on Tuesday will also keep a close eye on the Advanced Q2 GDP print, which could provide some impetus to the buck and the XAU/USD pair.
Market players this week will also confront the release of the US Personal Consumption Expenditure (PCE) Price Index and the Nonfarm Payrolls (NFP) report on Thursday and Friday, respectively. This should continue to infuse some volatility through the second half of the week and produce some meaningful trading opportunities around the commodity.
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
