Gold prices in the United Arab Emirates have risen. They are now AED 479.05 per gram, up from AED 474.47. A tola of gold has increased to AED 5,587.58, from AED 5,534.18. Global risk sentiment has declined as US President Donald Trump threatened to impose 100% tariffs on Chinese exports. This raised tensions, with China considering potential countermeasures.

Gold Prices Rise Due to Political Uncertainty

Trump tried to soften his approach by posting on Truth Social about wanting to avoid economic challenges. This added uncertainty around a potential meeting with Chinese President Xi Jinping, contributing to the rise in gold prices. The U.S. government shutdown may extend into a third week due to a lack of bipartisan cooperation. Trump claimed that the impact of the shutdown on federal employees is due to Democrats. He also mentioned possibly sending Tomahawk missiles to Ukraine if Russia does not end the conflict soon. These geopolitical risks made gold more appealing as a safe investment. The CME FedWatch tool indicates a high chance of a 25-basis-point interest rate cut by the Fed in October and December. This situation is favorable for gold prices. Gold prices in the UAE are adjusted from international prices to local currency and updated daily. In 2022, central banks added 1,136 tonnes of gold to their reserves, the highest amount ever purchased in a year.

October 2025 Gold Market Trends

In October 2025, gold prices are hitting new all-time highs due to geopolitical risks and expectations of easier monetary policy. December gold futures are now trading above $4,000 per ounce. Traders should prepare for significant volatility ahead, pointing to continued interest in safe investments. The increasing trade tensions with China are a key concern, especially with a November 1st deadline for possible 100% tariffs and new export controls approaching. There is also a threat of introducing new long-range missiles in the Russia-Ukraine conflict, keeping geopolitical tensions high. These factors are driving strong demand for gold. In the U.S., the ongoing government shutdown is weakening the dollar, while the market anticipates an almost certain interest rate cut by the Federal Reserve. According to the CME FedWatch tool, there is a 96% chance of a rate cut this month. This is supported by recent data from the Bureau of Labor Statistics showing that core inflation in September 2025 cooled more than expected. Lower interest rates make gold, which does not earn interest, more attractive. Market positioning reflects this positive outlook. The latest Commitment of Traders (COT) report from the CFTC shows that managed money funds have increased their net-long positions in gold futures for the fifth consecutive week. This accumulation by large speculators indicates strong confidence that gold prices will continue to rise. Historically, central bank buying has supported gold prices. The World Gold Council’s Q3 2025 report confirms that banks in emerging markets are adding significant amounts of gold to their reserves. This institutional demand is a strong long-term trend supporting gold. Therefore, traders should think about strategies to profit from further price increases and high volatility. Create your live VT Markets account and start trading now.

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