Gold prices rose in the United Arab Emirates on Wednesday, according to data collected by FXSTERET.
The price of gold stood at 394.00 Dirhams of the United Arab Emirates (AED) per gram, an increase compared to the 392.49 AED it cost on Tuesday.
The price of gold increased to 4,595.60 AED per Tola from 4,577.95 AED per tola from the previous day.
| Unit of measure | Gold price in AED |
|---|---|
| 1 gram | 394.00 |
| 10 grams | 3,940.05 |
| Tola | 4,595.60 |
| Troy ounce | 12,254.93 |
What moves the market today: the price of gold attracts safe refuge flows amid commercial concerns
The US Labor Statistics Office reported on Tuesday that the Consumer Price Index (CPI) general increased the highest percentage in five months, 0.3% in June, and the annual rate accelerated to 2.7% from 2.4% in May. Meanwhile, the underlying indicator, which excludes fluctuating food and energy costs, rose 2.9% year -on -year from 2.8% of the previous month.
The data generated concerns about the inflationary effects of the trade tariffs of US President Donald Trump and reaffirmed the bets that the Federal Reserve will maintain the highest rates for a prolonged period. This raised the yields of the US Treasury bonds and the US dollar at its highest level since June 23, dragging the price of gold to a minimum of several days.
The president of the Boston Fed, Susan Collins, said it is a challenge to establish monetary policy at this time in the midst of uncertainty, and a solid economy gives the US Central Bank time to decide its next movement of interest rates. Tariffs could increase inflation in the second half of 2025 and push underlying inflation to about 3% by the end of the year, Boston added.
Separately, the president of the Fed of Dallas, Lorie Logan, said that the base case is that monetary policy needs to be adjusted for a time to reduce inflation. Logan added that tariff increases seem likely to create additional inflation for some time, and an early rate cut by the FED risk leaving deeper economic scars on a longer path towards price stability.
Meanwhile, Trump said Tuesday that 200% tariffs on pharmaceutical imports will arrive at the end of the month. This adds to Trump tariff notices to more than 20 countries and a 50% tariff on copper imports last week, which keeps investors in suspense and helps the precious metal for sure refuge to attract some purchases at lower levels on Wednesday.
The operators now expect the publication of the US Production Price Index that will be given later during the American session. Apart from this, the comments of influential members of the FOMC will boost the USD and provide a new impulse to the Xau/USD torque. The mixed fundamental background, meanwhile, justifies caution for aggressive operators.
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.
