Gold prices fell in the United Arab Emirates on Tuesday, according to data collected by FXSTERET.
The price of gold stood at 400.24 Dirhams of the United Arab Emirates (AED) per gram, a decrease compared to the 401.15 AED it cost on Monday.
The price of gold decreased to 4,668.28 AED per Tola from 4,678.92 AED per tola from the previous day.
| Unit of measure | Gold price in AED |
|---|---|
| 1 gram | 400.24 |
| 10 grams | 4.002.37 |
| Tola | 4,668.28 |
| Troy ounce | 12,448.71 |
What moves the market today: the price of gold depreciates while the US dollar advances amid the caution of the market
The dollar (DXY) index, which measures the value of the US dollar (USD) compared to six main currencies, remains stable after losing more than 0.50% in the previous session and quoting around 97.90 at the time of writing. The dollar finds support in the caution of the market, which weighs on gold called in dollars by making it more expensive for buyers who use other currencies.
A White House official said that US President Donald Trump will probably say goodbye to Fed President Jerome Powell, soon. However, Trump denied it in a social truth publication on Sunday, calling him “typically misleading.”
Republican congresswoman Anna Paulina Luna has formally accused the president of the Fed, Powell, to commit perjury on two different occasions, both related to discussions about long -term renewals of the Federal Reserve headquarters in Washington, DC
The Governor of the FOMC, Adriana Kugler, said that the US Central Bank should not lower interest rates “for some time” since the effects of Trump administration tariffs are beginning to be reflected in consumer prices. Kugler added that a restrictive monetary policy is essential to maintain inflation psychology under control.
The president of the Fed of San Francisco, Mary Daly, said last week that waiting for two rates cuts this year is a “reasonable” perspective, while warning against waiting too much time. Daly added that rates will eventually stabilize by 3% or more, which is higher than the neutral rate prior to pandemic.
The governor of the Fed, Christopher Waller, said he believes that the US Central Bank should reduce its interest rate objective at the July meeting, citing growing economic risks. Waller added that delaying cuts runs the risk of needing more aggressive actions later.
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.
GOLD – FREQUENT QUESTIONS
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.
