**Gold As A Safe Haven** Gold prices in the United Arab Emirates fell on Wednesday, according to FXStreet data. The price per gram dropped to 527.18 AED from 530.61 AED on Tuesday. The price per tola decreased to 6,148.97 AED, down from 6,188.90 AED. FXStreet calculates these UAE gold prices by adjusting international prices to local currency and measurement units, updating daily. These prices serve as a reference; local rates may vary slightly. Gold has long been recognized as a way to store value and as a method of exchange. Besides its use in jewelry, it acts as a safe-haven asset and a hedge against inflation and currency loss, especially during economic turmoil. Central banks, which hold the most gold, use it to diversify their reserves, strengthening their economies. In 2022, central banks added 1,136 tonnes of gold—worth about $70 billion—to their reserves, marking the largest annual purchase ever recorded. Gold prices often move in the opposite direction of the US Dollar and US Treasuries. When these decrease, gold prices generally increase. Its value is influenced by geopolitical unrest, economic concerns, interest rates, and the behavior of the dollar; typically, a strong dollar puts pressure on gold prices. **Gold Price Trends** Gold prices recently dipped to 527.18 AED per gram. We see this as a minor fluctuation rather than a shift in trend. This small pullback could be a chance for traders to prepare for the upcoming weeks. The main market drivers continue to support gold. A key factor is the inverse relationship with the US Dollar, which is currently under pressure. The DXY index has dropped from its peak in late 2025 to around 103.5, benefiting gold prices. We anticipate this trend will persist, especially as discussions about possible Federal Reserve rate cuts later this year gain traction. Speculation about interest rates arises from recent data showing US inflation has cooled to 2.5% and the unemployment rate has slightly increased in the last quarter of 2025. In a climate of falling interest rates, gold becomes more attractive as it does not yield interest. This economic backdrop points to a positive outlook for the weeks ahead. We also need to consider the steady demand from central banks, which provides strong support for prices. Following record purchases in previous years, the World Gold Council reported that another 950 tonnes were added to official reserves by the end of 2025. This ongoing institutional buying helps reduce major downside risk for traders. In this context, we view the current price dip as an opportunity to enter or increase bullish positions. Purchasing call options might be a smart move to take advantage of potential upside while managing risk. We are monitoring key technical levels, and a return above recent highs would confirm that the uptrend is resuming. Create your live VT Markets account and start trading now.

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