Gold prices fell in the United Arab Emirates on Wednesday, according to data collected by FXSTERET.
The price of gold stood at 399.45 Dirhams of the United Arab Emirates (AED) per gram, below 405.22 AED it cost on Tuesday.
The price of gold decreased to 4,659.12 AED per Tola from 4,726.45 AED per tola of the previous day.
| Unit of measure | Gold price in AED |
|---|---|
| 1 gram | 399.45 |
| 10 grams | 3,994.51 |
| Tola | 4,659.12 |
| Troy ounce | 12,424.22 |
What moves the market today: the price of gold is pressured by a combination of factors while operators expect the Fed decision
The US Treasury Secretary, Scott Besent, and the trade representative, Jamieson Greer, will meet with their Chinese counterparts in Switzerland on Saturday to discuss commercial and economic issues. This is the first direct conversation since the US imposed tariffs on China and a step towards resolving a commercial war between the two largest economies in the world.
Meanwhile, US President Donald Trump said Tuesday that he and senior administration officials will review possible commercial agreements during the next two weeks to decide which ones to accept. However, this contradicts Trump’s previous statement that his administration could announce trade agreements with some countries as soon as this week.
In addition, Trump had announced 100% tariffs on the films produced outside the US and also indicated that he plans to announce new tariffs on pharmaceutical imports in the next two weeks. This keeps investors in suspense and could continue to act as a tail wind for the price of safe refuge gold amid the growing geopolitical risks.
A Kremlin spokesman says that Russia will remain firm in his plans of a high fire imposed unilaterally between May 8 and 11, but warned that an appropriate response will be given immediately if Ukraine does not stop the fire. Meanwhile, Russia and Ukraine exchanged 205 prisoners of war each in an exchange mediated by the United Arab Emirates.
Israel’s security cabinet unanimously approved a plan to expand the military offensive in Gaza. The plan implies that Israel’s defense forces (IDF) gradually invade and take control of the territory of Gaza. Although formal details were not announced, the officials said the operation would not begin until after Trump’s visit to the Middle East next week.
Investors expect the Federal Reserve decision later on Wednesday. The Fed Mondeary Policy Declaration and the comments of the President of the FED, Jerome Powell, at the press conference after the meeting will be analyzed in search of clues on the future path of feat cuts. This will boost the demand of the US dollar and influence yellow metal without yield.
FXSTERET calculates gold prices in the United Arab Emirates adapting international prices (USD/Aed) to the local currency and the units of measure. Prices are updated daily according to market rates taken at the time of publication. Prices are only reference and local rates could diverge slightly.
FAQS GOLD
Gold has played a fundamental role in the history of mankind, since it has been widely used as a deposit of value and a half of exchange. At present, apart from its brightness and use for jewelry, precious metal is considered an active refuge, which means that it is considered a good investment in turbulent times. Gold is also considered a coverage against inflation and depreciation of currencies, since it does not depend on any specific issuer or government.
Central banks are the greatest gold holders. In their objective of supporting their currencies in turbulent times, central banks tend to diversify their reserves and buy gold to improve the perception of strength of the economy and currency. High gold reserves can be a source of trust for the solvency of a country. Central banks added 1,136 tons of gold worth 70,000 million to their reservations in 2022, according to data from the World Gold Council. It is the largest annual purchase since there are records. The central banks of emerging economies such as China, India and Türkiye are rapidly increasing their gold reserves.
Gold has a reverse correlation with the US dollar and US Treasury bonds, which are the main reserve and shelter assets. When the dollar depreciates, the price of gold tends to rise, which allows investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rebound in the stock market tends to weaken the price of gold, while mass sales in higher risk markets tend to favor precious metal.
The price of gold can move due to a wide range of factors. Geopolitical instability or fear of a deep recession can cause the price of gold to rise rapidly due to its condition of active refuge. As an asset without yield, the price of gold tends to rise when interest rates lower, while the money increases to the yellow metal. Even so, most movements depend on how the US dollar (USD) behaves, since the asset is quoted in dollars (Xau/USD). A strong dollar tends to keep the price of gold controlled, while a weakest dollar probably thrusts gold prices.
(An automation tool was used to create this publication.)
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
