Gold prices in the United Arab Emirates went up on Monday, according to FXStreet data. The price per gram rose to 550.94 AED from 541.09 AED on Friday. The cost per tola also increased to 6,425.92 AED from 6,311.18 AED. Gold prices are set by FXStreet, which adjusts international rates for local currency and units. These prices change daily and may be slightly different from local rates. Gold is still seen as a reliable investment and is favored during economic uncertainty because it protects against inflation.

Emerging Economy Gold Reserves

Central banks are significant buyers of gold. In 2022, they added 1,136 tonnes to their reserves, marking the largest yearly purchase. Countries like China, India, and Turkey are actively increasing their gold reserves. Gold prices tend to move opposite to the US Dollar and US Treasuries. When the Dollar weakens, gold becomes more valuable. It also tends to rise when riskier investments, like stocks, decline. Problems in global politics and fears of a recession can drive up gold prices, reinforcing its image as a safe-haven asset. Interest rates also influence gold; lower rates make it more appealing. However, the value of the US Dollar is key since gold is priced in dollars. The recent increase in gold prices reflects a broader trend noted in early 2026. This rise is mainly due to the weakening US Dollar, which has dropped nearly 4% since its peak in the last quarter of 2025. When the Dollar is cheaper, gold becomes more attractive for those using other currencies.

Market Expectations

The decline of the dollar is fueled by expectations of future interest rate cuts from the U.S. Federal Reserve. Recent economic data suggests a slowdown, and futures markets now predict over a 70% chance of a rate cut by June 2026. As a non-yielding asset, gold gains appeal when interest rates are expected to drop. We also saw strong demand from central banks in 2025, providing a solid price foundation. The World Gold Council’s year-end report for 2025 indicated that central banks added another 1,080 tonnes to their reserves, nearly matching the record-setting pace seen in 2022. This steady accumulation points to a long-term shift toward investing in gold. Reflecting on the period after the 2008 financial crisis provides insight into potential outcomes when interest rates drop during uncertain economic times. Following those cuts, gold experienced a multi-year bull market. Given the current slowing economy and anticipated monetary easing, conditions seem favorable for ongoing strength in gold prices. For derivative traders, this situation suggests that taking long positions is a smart choice. Buying call options on gold ETFs or futures could be a way to benefit from potential price increases while managing downside risk. We should pay attention to the previous highs from late 2025 as the next key resistance level. Create your live VT Markets account and start trading now.

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