Gold prices in the United Arab Emirates stayed stable, with a gram priced at 476.88 AED, slightly down from 477.18 AED the day before. The price for a tola also remained steady at 5,562.20 AED, compared to 5,565.76 AED the previous day.

How Geopolitics Affect Markets

Geopolitical events, like US President Donald Trump’s peace plan for Gaza, have affected market moods and led gold traders to take profits. Minutes from the Federal Reserve’s latest meeting showed agreement on lowering interest rates due to worries about the job market. The CME FedWatch tool indicates a high chance of more rate cuts coming. The ongoing government shutdown in the US has impacted financial markets, limiting the value of the US Dollar and boosting gold prices. Political disagreements are creating economic uncertainty. Tensions, especially involving Russia’s position on US-Ukraine military support, also play a role in market trends. In the UAE, gold prices are determined by converting international rates from USD/AED to local currency. These prices are updated regularly but can vary locally. Gold is seen as a solid investment during economic ups and downs, serving as a safe asset and protection against inflation. Central banks worldwide, especially in emerging markets, are significantly increasing their gold reserves. With gold prices holding steady at 476.88 AED per gram, the market is currently stable. This calm period provides a chance to prepare for the next move, as underlying tensions still exist. The current quiet is likely short-lived, making this an important time to review investment strategies. Profit-taking is occurring after recent tensions between China and the Philippines in the South China Sea seemed to ease last month. However, this tranquility is delicate; any renewed conflict could drive investors back to the safety of gold. Traders may want to explore long-dated, out-of-the-money call options as a cost-effective way to protect against sudden uncertainty.

The Federal Reserve and Market Outlook

The Federal Reserve’s minutes from its September 2025 meeting revealed significant disagreements among officials about future interest rates amid slowing global growth. According to the CME FedWatch tool, markets now see a 75% chance of a rate cut by December, up from 50% a month earlier. This expectation of lower rates should help support gold prices in the near future. We must also consider the political situation in the United States, where lawmakers are again struggling to agree on a budget with a new deadline approaching. The risk of another government shutdown is real, and memories of the long shutdown in late 2023 still impact sentiment. Such an event would likely weaken the US Dollar and enhance gold’s appeal as a safe haven. Persistent demand from central banks also supports gold prices, creating a solid long-term foundation. Following a record buying trend in 2022 and 2023, data from the World Gold Council shows that emerging market central banks added 450 tonnes to their reserves in the first half of 2025. This ongoing demand limits potential declines and strengthens the case for maintaining a long position. Create your live VT Markets account and start trading now.

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