Gold prices fell in the United Arab Emirates on Tuesday, according to data collected by FXSTERET.
The price of gold stood at 395.44 Dirhams of the United Arab Emirates (AED) per gram, below 397.70 AED that cost on Monday.
The price of gold decreased to 4,612.38 AED per Tola from 4,638.70 AED per tola from the previous day.
| Unit of measure | Gold price in AED |
|---|---|
| 1 gram | 395.44 |
| 10 grams | 3,954.44 |
| Tola | 4,612.38 |
| Troy ounce | 12,299.73 |
What moves the market today: the rebound to the price of gold extends, while Iran responds to the US bases
On Saturday, the United States (USA) carried out an attack on three of Iran’s nuclear facilities: Fordow, Natanz and Isfahan. US President Donald Trump described the mission as “a very successful attack” and warned that “there are many other objectives” if Iran remains reluctant to peace conversations.
The US Midnight Hammer operation involved B-2 Spirit bombers and Tomahawk missiles of US submarines.
Recently, the US S&P manufacturing PMI for June was 52, above the expectations of 51, but without changes compared to the previous reading. The PMI of services fell from 53.7 to 53.1 in June, a little above the estimates of 52.9.
The 10 -year American treasure bonus performance has dropped seven basic points (PBS) to 4,306%. The real US yields, which are inversely correlated with gold prices, also fell, standing at 1,978%.
The FED monetary policy report recently revealed that there are early signs that tariffs are contributing to greater inflation. However, its complete impact has not yet been reflected in the data. The report added that the current policy is well positioned and that financial stability is resilient amid high uncertainty.
The monetary markets suggest that the operators are discounting 57.5 basic points of flexibility towards the end of the year, according to Prime Market Terminal data.
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.
