Gold prices rose in the United Arab Emirates on Wednesday, according to data collected by FXSTERET.
The price of gold stood at 390.20 Dirhams of the United Arab Emirates (AED) per gram, an increase compared to the 388.49 AED it cost on Tuesday.
The price of gold increased to 4,550.97 AED per Tola from 4,531.29 AED per tola from the previous day.
| Unit of measure | Gold price in AED |
|---|---|
| 1 gram | 390.20 |
| 10 grams | 3,901,81 |
| Tola | 4,550.97 |
| Troy ounce | 12,136.58 |
Daily Gold Market Movements: Recovery extends in the midst of high US yields and Fed hard line comments
The yields of the US Treasury bonds have increased due to the actions of Moody’s, with the 10 -year treasure note in around 4.477%, an increase of almost three basic points (PBS). Meanwhile, the real US yu.
The US dollar index (DXY), which follows the performance of the US currency compared to six others, falls 0.21% to 100.17. Although it remains above the daily minimums of 100.06, operators seeking security have moved to the yellow metal.
The president of the Fed of St. Louis, Alberto Musalem, said that if inflation expectations are disagree, the FED policy should focus on price stability. He said there is uncertainty about whether tariffs would have a temporary or persistent effect on inflation.
Last week, Moody’s, the International Qualification Agency, reduced the qualification of the US government of AAA to AA1. They stressed that more than a decade of inaction by successive administrations and the US Congress has contributed to the deterioration of the country’s fiscal position, which generates concerns about the sustainability of long -term debt.
Given the background, the main banks are convinced that the yellow metal will continue to recover from next year. Goldman Sachs predicts that the ingot will average $ 3,700 for the end of the year, and then reach $ 4,000 in mid -2026.
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.
