Gold prices in the United Arab Emirates went up on Friday, according to FXStreet data. The price increased to 516.33 AED per gram from 509.86 AED the day before. The price for Gold per tola rose to 6,022.33 AED from 5,946.93 AED. A Troy Ounce of Gold was priced at 16,059.53 AED.

Gold Prices in the UAE

FXStreet updates international prices (USD/AED) to fit the local UAE currency. Prices change daily and may vary slightly from local rates. Gold has always been a valuable asset, used for trade and saving. It is also considered a safe investment and a way to protect against inflation and weakening currencies. Central banks hold the most gold. In 2022, they bought 1,136 tonnes worth $70 billion, marking the largest yearly increase ever. Banks in emerging economies are boosting their reserves. Gold prices often move in the opposite direction of the US Dollar and US Treasuries. When the Dollar loses value, gold prices usually rise.

Influence of Economic Factors on Gold Prices

Gold prices are affected by factors like geopolitical issues and interest rates. The behavior of the US Dollar is particularly important because gold is priced in dollars (XAU/USD). We’re seeing a significant increase in gold prices, likely connected to the recent decline of the US Dollar. The Dollar Index (DXY) fell below 101.5 in late December 2025, which benefits precious metals. This trend suggests that taking long positions in gold derivatives might be profitable soon. This situation is enhanced by expectations that major central banks may ease monetary policies in the first half of this year. The Federal Reserve indicated a possible pause in its tightening cycle during its December 2025 meeting, a big change from its earlier stance. Therefore, buying call options expiring in February and March 2026 seems like a smart way to catch this expected price rise. Adding to this positive outlook are fears of a global economic slowdown, highlighted by the latest manufacturing PMI data for Q4 2025, showing a decline in the Eurozone and Asia. Historically, such uncertainty has led to increased investments in safe-haven assets like gold. This environment makes selling out-of-the-money put options attractive for those looking to earn premiums while keeping a bullish outlook. It’s also important to note that central banks are still actively buying gold, following the strong purchasing pattern from 2022. Reports show they added over 950 tonnes to their reserves in the first three quarters of 2025, providing strong price support. This backing helps reduce risks for those holding long futures contracts. Create your live VT Markets account and start trading now.

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