Gold prices were practically unchanged in the United Arab Emirates on Wednesday, according to data collected by FXSTERET.
The price of gold stood at 358.53 Dirhams of the United Arab Emirates (AED) per gram, practically stable compared to the 358.33 AED it cost on Tuesday.
The price of gold remained practically stable at 4,181.86 AED per Tola from 4,179.50 AED per tola of the previous day.
| Unit of measure | Gold price in AED |
|---|---|
| 1 gram | 358.53 |
| 10 grams | 3,585.33 |
| Tola | 4,181.86 |
| Troy ounce | 11,151.62 |
What moves the market today: the bulls of the price of gold become cautious before the long -awaited decision of the Fomc
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The price of gold reached a new historical maximum, around the 3,038-3.039 $ region on Tuesday, since the increase in tensions in the Middle East and concerns about the tariff plans of US President Donald Trump continue to feed the demand for the shelter.
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Israeli air attacks against Hamas objectives in Gaza have left more than 400 dead. The Israeli prime minister, Benjamin Netanyahu, said he ordered the attacks because Hamas had rejected proposals to extend the high fire that has been maintained since January.
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Trump has threatened to impose reciprocal and sectoral tariffs, which said they will enter into force on April 2. This adds to a fixed 25% tariff on steel and aluminum since February, feeding the fears of a global commercial war.
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The operators increase their bets that the Federal Reserve will have to reduce interest rates this year more than expected, given the growing possibility of an economic recession due to the aggressive Trump administration policies.
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The current market assessment indicates the possibility that Fed can reduce indebtedness costs by 25 basic points in the monetary policy meetings of June, July and October, which further supports the yellow metal that now yields.
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The US dollar experiences a modest rebound from a minimum of more than five months reached on Tuesday, since operators choose to lighten their bassist bets before the FOMC decision, which will be announced later during the US session on Wednesday.
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The Accompanying Monetary Policy Declaration and the comments of the President of the Fed, Jerome Powell, will be examined closely in search of clues about the future trajectory of feat cuts, which will boost the demand of the USD and will influence the XAU/USD torque.
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.
