Gold prices fell in the United Arab Emirates on Tuesday. The price per gram dropped from 494.99 AED on Monday to 494.41 AED. The price per tola also decreased, going from 5,773.41 AED to 5,766.69 AED. The cost of a troy ounce was recorded at 15,377.88 AED.

Calculating Rates

FXStreet calculates these rates, converting international prices to AED based on current market rates. Prices are updated daily, but local rates may differ. Gold is traditionally seen as a safe investment, especially during uncertain times. Many people use it to protect against inflation and currency drops. In 2022, central banks bought 1,136 tonnes of gold, worth $70 billion, for their reserves. This was the biggest annual purchase to date, particularly from emerging markets like China, India, and Turkey. Gold prices usually move in the opposite direction of the US Dollar and government bonds. When the Dollar falls, gold prices tend to rise, and vice versa.

Factors Affecting Gold Price

Gold prices are influenced by geopolitical issues, recessions, and interest rates. Since gold is priced in USD, a strong Dollar stabilizes prices, while a weak Dollar pushes them up. Today, gold prices are slightly lower, but this may be temporary amidst broader trends. The focus is on discussions about the US Federal Reserve, with markets anticipating possible interest rate cuts beginning in the second quarter of 2026 to support a slowing economy. Gold usually performs better when interest rates are expected to drop. This trend is already impacting the US Dollar, which tends to move opposite to gold. The Dollar Index (DXY) has decreased from over 105 in October to around 102.5 this week. A weaker Dollar makes gold cheaper for buyers using other currencies, generally helping to raise prices. We also need to recognize the ongoing demand from central banks, particularly since last year’s record purchases. The World Gold Council reported that central banks, especially in Asia, added an additional 250 tonnes to their reserves in the third quarter of 2025. This steady buying offers strong support for gold prices against major sell-offs. Given these factors, any dips in prices in the next few weeks could be a good buying opportunity. For traders, considering long positions through call options on gold futures expiring in mid-2026 might be a smart strategy. This allows us to take advantage of expected price increases due to changes in monetary policy while managing our risks. Create your live VT Markets account and start trading now.

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