Gold prices in the United Arab Emirates remained steady on Thursday. A gram was priced at 393.80 AED, up slightly from 393.49 AED on Wednesday. A tola was 4,593.21 AED, also slightly higher than 4,589.63 AED previously. Here are the latest gold prices: – 1 gram: 393.80 AED – 10 grams: 3,938.00 AED – 1 tola: 4,593.21 AED – 1 troy ounce: 12,248.54 AED The US Federal Reserve’s interest rate decisions and tariff uncertainties are affecting the US dollar, benefiting gold prices for two consecutive days.

Geopolitical Situations and Gold Prices

Gold prices are not showing much upward momentum, partly due to geopolitical events like the Israel-Iran truce. Even though the US President announced victory, ongoing uncertainty is keeping aggressive gold buyers at bay. Traders are closely watching US economic indicators, such as GDP, jobless claims, and durable goods orders. Also, comments from FOMC members on interest rates could influence gold prices. Key inflation data from the PCE Price Index, scheduled for release on Friday, is likely to impact the US dollar and gold prices. Historically, gold is seen as a safe-haven asset during market instability and serves as a hedge against currency fluctuations. Central banks hold substantial gold reserves to support their currencies and have recently increased their holdings. The price of gold reacts to geopolitical stability and changes in currency value.

Gold Prices in the Emirates

Gold prices in the Emirates saw a slight increase on Thursday, with a gram priced at 393.80 AED and a tola just over 4,593 AED. This stable price hides underlying factors influenced by monetary policy changes and global tensions. What does this mean? Even with two days of modest increases, the overall mood is cautiously optimistic. The recent uptick is mainly due to a perception that the US dollar has weakened, influenced by the Federal Reserve’s cautious approach to managing inflation. A weaker dollar makes gold slightly more attractive, but not enough for a significant rally. We interpret the Israel-Iran ceasefire as a reason for reduced safe-haven demand. As conflict eases and public “victories” are announced, markets tend to scale back protective positions taken earlier. However, the situation remains complex, and it’s not entirely peaceful yet. Traders who had rushed to buy gold might be taking profits as headlines shift focus to economic data. Looking ahead, upcoming economic reports like US GDP, jobless claims, and durable goods orders are more than statistics—they help us gauge the Federal Reserve’s future actions. If the economy remains strong, discussions about interest rate hikes may arise. If signs of weakness show, especially in labor or housing data, rate cuts could be anticipated sooner, which generally favors gold. Inflation remains crucial as well. The PCE Price Index, set to be released on Friday, is the Fed’s preferred measure. It affects whether they maintain current interest rates or change their policy. High inflation could strengthen the dollar, putting downward pressure on gold. Conversely, comforting inflation data might soften yields and encourage speculative interest in precious metals. Additionally, central banks continue to buy gold despite short-term price fluctuations or political events. Their purchases help stabilize the market by absorbing supply and building a support level, particularly when speculative buying dips. Overall, interest in gold is closely tied to the interest rate landscape. Price movements in the upcoming weeks will likely depend on whether inflation figures are lower and if economic activity shows signs of slowing. Signals that the US Fed may ease its restrictive stance could provide upward momentum, especially amid renewed geopolitical tensions or market stresses. It’s essential to remember that the market isn’t purely reacting on instinct—it’s carefully observing and waiting for key triggers. While the current mood is calm with a smooth surface, many underlying complexities are still at play. Be ready to reassess your positions when volatility returns. Create your live VT Markets account and start trading now.

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