Gold prices in the United Arab Emirates fell on Friday. The price per gram decreased to 543.00 AED from 543.81 AED the day before. For 10 grams, the price is now 5,430.27 AED. The price per tola dropped to 6,333.47 AED from 6,342.87 AED.

Gold Pricing Mechanism

Prices are set by FXStreet, which adjusts international rates to local currency. These prices change daily, but local market rates may differ. Gold has long been a way to exchange value and store wealth. In 2022, central banks added about 1,136 tonnes, worth $70 billion, to their gold reserves. Gold demand generally increases during times of geopolitical instability. It serves as a safeguard against inflation and declining currencies. Interest rates and the value of the US Dollar also affect gold prices. Lower interest rates typically boost gold demand, while a strong US Dollar can lower prices.

Market Impact and Trading Strategies

The recent dip in gold to 543.00 AED per gram is a moment of pause after a strong climb at the end of 2025. This slight drop might be a good time for traders to prepare for the next move. The overall economic environment is still very supportive of gold. The US Federal Reserve’s minutes from early January 2026 confirmed a halt in raising rates, and markets expect possible cuts by mid-year. The latest US Consumer Price Index data for December 2025 showed stubborn inflation at 3.2%, keeping fears of currency devaluation alive. This situation has put pressure on the US dollar, with the DXY index falling below the key 100 level for the first time since 2024. A weaker dollar is good for gold prices, and this trend is likely to continue into the first quarter of 2026. For those trading derivatives, buying call options for April and May 2026 looks appealing. The implied volatility for gold options is around 16%, which is low, even with rising tensions in the South China Sea. This means options are reasonably priced compared to the chance for a price increase. Given the strong buying from institutions, we believe the downside is limited. Central banks continued to buy in 2025, adding around 995 tonnes to global reserves, according to the World Gold Council’s latest numbers. This ongoing demand provides a solid foundation for the market, making strategies like selling out-of-the-money put options a good way to earn premiums. Create your live VT Markets account and start trading now.

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