Gold prices in the United Arab Emirates rose on Monday, according to FXStreet. The price per gram increased to 598.30 AED from Friday’s 588.18 AED. The price for gold per tola went up to 6,978.52 AED from 6,860.36 AED. Other measurements show that 10 grams of gold now costs 5,983.06 AED, and a troy ounce is priced at 18,609.49 AED.

How UAE Gold Prices are Set

FXStreet sets local gold prices by converting international rates into UAE currency and units, with daily updates. Gold has long been valued as a secure investment and a hedge against inflation. Demand for gold often increases during economic uncertainty. Central banks are significant buyers of gold, bolstering their reserves to instill economic confidence. In 2022, they added 1,136 tonnes, marking the highest amount on record. The price of gold typically moves in the opposite direction of the US Dollar and riskier assets. Gold tends to gain when interest rates are low and economic conditions are unsettled. Factors like geopolitical events, interest rates, and the strength of the US Dollar impact gold prices. When the Dollar weakens, gold prices usually rise.

Current Market Trends

Gold prices have seen a noticeable rise, indicating a steady demand for safe investments. This comes after a stable period in the last quarter of 2025. Derivative traders should watch this upward trend as an important signal for the upcoming weeks. This price increase is supported by ongoing purchases from central banks. Recent data from the World Gold Council shows that emerging market banks bought over 850 tonnes of gold in 2025, creating a strong support level in the market. We expect this trend to continue as countries seek to move away from reliance on the US dollar. Minutes from the US Federal Reserve indicate a more cautious approach, with lower inflation figures for December 2025 at 2.8%. Lower interest rates lessen the cost of holding gold, making it a more attractive investment. This situation favors buying call options or long futures positions. Additionally, we are observing more shipping disruptions in major trade routes, adding geopolitical risk to the market. Such uncertainty often increases gold’s appeal as a safe asset. Buying protective put options on stock indices could be a smart strategy to hedge against this risk. In the derivatives market, we have noticed a rise in implied volatility for gold options, with the CBOE Gold Volatility Index (GVZ) increasing by 15% since the beginning of the year. This suggests that the market expects larger price swings soon. Traders might consider strategies like straddles or strangles to take advantage of this anticipated volatility, regardless of the direction. Create your live VT Markets account and start trading now.

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