Gold prices in the United Arab Emirates stayed steady on Friday. The price for gold was 497.57 AED per gram, up slightly from 497.09 AED the day before. The price per tola also held firm, rising from 5,798.00 AED to 5,803.57 AED. Gold prices are determined by FXStreet, which converts international prices into local currency and units. Prices may differ slightly due to local market factors. These daily updates reflect current market exchange rates when published.

Gold As A Safe Haven Asset

Gold is seen as a dependable investment during tough economic times. It also protects against inflation and the decline of currency value. Unlike currencies, gold’s value is not tied to any central authority. Central banks often hold gold, increasing their reserves during uncertain times to strengthen their economies. Gold typically moves in the opposite direction of the US Dollar and US Treasuries. When the Dollar falls, gold prices usually rise, making gold a good option for diversifying assets. Prices also tend to increase during market instability or when interest rates decline, while a strong Dollar generally keeps prices down. Overall, gold prices are affected by geopolitical events, economic conditions, and the strength of currencies. Currently, gold prices are stable, suggesting a period of consolidation before a potential rise. The steady price around 497 AED per gram indicates that the market is absorbing recent gains and establishing a foundation. This calm period presents an opportunity to prepare for future movements. The main factor influencing gold is the changing position of the US Federal Reserve. After maintaining interest rates through much of 2025 to tackle persistent inflation—currently around 3.1%—the Fed is now hinting at possible rate cuts for early 2026. This expectation has led the US Dollar Index (DXY) to drop from its 2024 highs, falling below 102, which supports gold prices.

Central Bank Demand

We are also seeing strong demand from central banks, continuing a trend that started in 2022. Recent data from the third quarter of 2025 showed that central banks added 337 tonnes to their reserves, highlighting their ongoing commitment to move away from the US dollar. This institutional demand provides a solid price floor and reduces the risk of price declines. With economic uncertainty and ongoing geopolitical tensions, gold’s role as a safe-haven asset is becoming increasingly important. The S&P 500 has shown weakness over the last quarter as recession fears rise, leading to investments in safer assets. This inverse relationship between stocks and gold has unfolded as anticipated. For traders using derivatives, this environment suggests preparing for a bullish trend in the next few weeks. Consider buying call options or setting up bull call spreads on COMEX gold futures to tap into potential upside while managing risk. With implied volatility remaining reasonable, options strategies offer a cost-effective way to position for a breakout above recent highs. Create your live VT Markets account and start trading now.

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