**Gold Prices and Political Influence** Gold prices in the United Arab Emirates went up on Friday. The price per gram reached 394.56 AED, an increase from 392.74 AED the previous day. The price for a tola also climbed to 4,602.08 AED, up from 4,580.87 AED. **Key Gold Prices:** – **Per gram:** 394.56 AED – **For 10 grams:** 3,945.61 AED – **Per tola:** 4,602.08 AED – **Per troy ounce:** 12,272.15 AED The market reacted to the ADP Employment Change report, which showed a loss of 33,000 jobs in June. Political influences can also impact gold prices. For example, President Trump has been pressuring Fed Chair Jerome Powell to resign. This kind of political uncertainty in the U.S. can increase demand for gold, which may weaken the U.S. dollar. Gold prices in the UAE are set by adjusting international rates to the local currency and are updated daily based on market conditions. Various factors such as geopolitical tensions, movements in the U.S. dollar, and interest rates all play a role in influencing gold prices. Gold is considered a safe haven asset. It helps protect against inflation and currency loss, with central banks being major holders. Usually, its price moves in the opposite direction of the U.S. dollar and riskier assets. — **Local Impacts on Gold Trading in the UAE** Gold prices in the UAE have risen. Each gram now costs 394.56 AED, which is slightly higher than the previous day. The price for a tola also increased, reflecting the U.S. jobs report, which showed a drop of 33,000 jobs. This drop in employment indicates a slowdown in the U.S. job market, which may pressure the Federal Reserve to reconsider its interest rate policies. When job numbers are low, investors often turn to gold, as lower interest rates make gold a more appealing investment compared to fixed-income instruments that offer fewer returns. Moreover, political pressure from Trump against Powell introduces further uncertainty. Although central banks usually operate independently, questioning their independence can unsettle markets. As a result, both economic data and political factors are supporting gold prices through a climate of steady uncertainty. We also see that local prices in the UAE follow global trends. Gold prices in dirhams are directly impacted by shifts in the U.S. dollar. If the dollar weakens, gold priced in AED can increase. Traders should focus on general market sentiment rather than just economic surprises. Trends in inflation and interest rate expectations are closely tied to gold. Any statement from Powell or the Fed can influence market behavior more than individual economic reports. Gold is also returning to its role as a hedge, especially among central banks accumulating reserves. This indicates a cautious outlook on debt-backed currencies. When these institutions increase their gold holdings, it often signals a preparation strategy rather than speculative buying. Currently, the negative correlation between gold and the U.S. dollar remains strong. During times of mixed equity markets or lower momentum, investments in gold can rise quickly. In the coming weeks, adjustments in options pricing may reveal how traders hedge against potential declines in equities or bet on weaker economic data. Volatility is manageable for now, but this could shift if upcoming payroll reports or PMI figures deviate from expectations. We should monitor any sudden increases in open interest at key price levels, particularly around 395 AED per gram. This price seems to act as a temporary psychological barrier. Strategic positioning, rather than just volume, should guide decisions, especially as policy direction approaches a turning point. As always, understanding how others interpret the same data can provide better judgment than the data alone. Misses and beats no longer convey the full story; market reactions hold more significance. **Create your live VT Markets account and start trading now.**

here to set up a live account on VT Markets now