Gold prices in the United Arab Emirates have risen. A gram of gold is now priced at 503.79 AED, up from 502.06 AED on Friday. The price for a tola has increased to 5,876.07 AED from 5,855.90 AED. Here are the gold prices for various units in AED: – 1 gram: 503.79 – 10 grams: 5,037.87 – Tola: 5,876.07 – Troy ounce: 15,669.12 FXStreet calculates these gold prices in the UAE by adjusting international rates to local currency and units. Prices are updated daily and may vary locally.

Gold As A Safe Haven

Gold acts as a store of value and a medium of exchange. It is often viewed as a safe-haven asset during uncertain times. Gold helps protect against inflation and falling currencies. In 2022, central banks, the largest gold owners, bought 1,136 tonnes, valued at around $70 billion. Gold generally moves in the opposite direction of the US Dollar and US Treasuries. Its price is affected by geopolitical tensions, fears of recession, and interest rates. A strong US Dollar usually keeps gold prices lower, while a weak Dollar tends to push them higher. The recent small increase in gold prices is part of a bigger trend that traders should monitor closely. This movement reflects gold’s traditional role as a safe haven during uncertain times. Ongoing geopolitical tensions and market instability are making investors nervous, leading them to seek tangible assets. Continued strong buying from central banks is noteworthy, particularly since the record purchases in 2022. According to recent World Gold Council data for the third quarter of 2025, central banks—especially in emerging markets—added another 220 tonnes to their reserves. This steady demand provides a solid support level for gold prices, indicating that large drops will likely be quickly bought.

Interest Rate Impact On Gold

Reflecting on the aggressive interest rate hikes by the US Federal Reserve in 2022 and 2023, the situation looks different as we approach late 2025. The market now expects rate cuts in the first half of 2026 to address slowing growth, boosting the appeal of gold, which does not yield interest. This expectation is weakening the US Dollar, benefiting gold further. Recent inflation data has raised concerns, with the latest Consumer Price Index showing a persistent 3.4%, higher than many anticipated. This renewed fear of inflation, combined with a recent dip in equity markets, strengthens gold’s role as a hedge. For traders, this environment suggests buying dips in gold futures might be a wise strategy in the weeks ahead. Given this outlook, traders might find success using options to express a bullish stance while managing risk. Long call options on gold futures or ETFs would allow for potential gains with limited risk. This approach capitalizes on the expected monetary easing and ongoing demand for gold as a safe haven. Create your live VT Markets account and start trading now.

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