Gold prices in the United Arab Emirates have increased. The price per gram is now 539.36 AED, up from 532.29 AED on Friday. The price per tola rose to 6,290.87 AED, compared to 6,208.53 AED on Friday, according to FXStreet. FXStreet updates gold prices daily based on international rates and the USD/AED exchange rate. Several factors can affect gold prices, including geopolitical issues and currency values. Gold is often viewed as a safe investment during uncertain times.

Central Banks and Gold Reserves

Central banks play a big role in gold purchases, holding large reserves to support their currencies. In 2022, they bought 1,136 tonnes of gold, which is a record high for annual purchases, according to the World Gold Council. Gold prices typically rise when the US Dollar weakens. Lower interest rates make gold more appealing since it does not generate yield. Additionally, fears related to geopolitical instability can push gold prices higher. The information from FXStreet is for reference only and should not be taken as financial advice. Users should conduct their own research before making any financial decisions, as investing comes with risks, including the potential loss of principal. Gold prices are rising, signaling its traditional role as a safe haven in uncertain times. This trend is not only global but also apparent in the United Arab Emirates, where the price per gram has increased in Dirhams. This indicates that investors may be feeling cautious as the year begins.

Market Speculation and Investment Strategies

A key factor in the current gold price increase is the weakening of the US Dollar. The U.S. Dollar Index (DXY) has dropped from its highs in late 2025 and is now around 103. Since gold is priced in dollars, this relationship is boosting gold’s value. There are also changing expectations regarding central bank policies. Recent economic data suggests that the Federal Reserve might lower interest rates later this year, making non-yielding assets like gold more attractive. In 2019, we saw gold prices surge in anticipation of Fed cuts, and a similar situation could be developing now. Strong demand from official institutions is supporting gold prices. At the end of last year, central banks, especially in emerging markets, were still making significant gold purchases in the fourth quarter of 2025. This consistent buying shows a long-term strategy to diversify reserves. For traders in derivatives, taking long positions in gold may be favorable. Rising market uncertainty is reflected in the VIX index, which has climbed back above 17, often indicating strength in safe-haven assets. Buying call options on gold futures or related ETFs provides a defined-risk way to gain exposure to potential price increases. There are also opportunities to capitalize on correlations between asset classes. Since gold often moves inversely to risk assets, pairing a long position in gold with a short in equity index futures could serve as an effective hedge. This strategy is particularly relevant as the market considers mixed global growth forecasts for 2026. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now