Gold prices in the United Arab Emirates fell on Monday, according to FXStreet. The price for 1 gram dropped to 533.13 AED, down from 535.02 AED on Friday. The price for 1 tola also decreased to 6,218.31 AED from 6,240.31 AED. Here are the current prices: – 1 gram: 533.13 AED – 10 grams: 5,331.29 AED – 1 tola: 6,218.31 AED – 1 troy ounce: 16,582.26 AED FXStreet updates the gold prices in USD/AED daily, using current market rates. Local prices may differ slightly from these reference rates.

Gold As A Stable Asset

Gold is prized for its stability and serves as a reliable store of value, especially in uncertain times. Central banks hold the largest gold reserves, adding 1,136 tonnes in 2022. Countries like China, India, and Turkey have been increasing their reserves. Gold prices usually go up when the US Dollar weakens or during market declines. Factors like geopolitical issues, interest rates, and Dollar strength also affect gold’s price, as it is priced in dollars (XAU/USD). The recent drop in gold to 533.13 AED per gram seems connected to lower trading volumes during the holiday season as we wrap up 2025. This small decline shouldn’t be seen as a major trend change. Instead, it’s a good time to consider larger factors that will shape the market in the coming year. A key factor to watch is the outlook for U.S. interest rates in 2026. After significant inflation in 2023 and 2024, recent data suggests a slowdown. This has led to speculation that the Federal Reserve might shift to a more neutral or even dovish approach. Since gold doesn’t earn interest, it usually benefits when rates are lower.

Impact Of Monetary Policy And Geopolitical Risks

Expectations around monetary policy are also affecting the U.S. Dollar. The Dollar Index (DXY) has softened in the fourth quarter of 2025, which historically tends to boost gold prices. A weaker Dollar makes gold more affordable for other currency holders, potentially increasing demand. We should also consider the strong ongoing demand from central banks. This trend, which included record purchases in 2022, continued through 2023 and 2024. Reports from the World Gold Council have shown that emerging markets are still diversifying their reserves, providing solid support for prices. Geopolitical tensions are also a concern, especially with ongoing trade talks among major economic groups creating uncertainty. Gold, viewed as a safe-haven asset, often rises in value during global instability. Any escalation in these tensions could lead to increased interest in gold, benefiting our long positions. Given the current market situation, we see low implied volatility in options as a chance to invest. This calm could be an opportunity to establish positions, such as buying call spreads, to take advantage of a possible price increase in January. These strategies allow for limited risk while preparing for upcoming economic data releases. Create your live VT Markets account and start trading now.

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