Insights 
VT 
Gold prices in the United Arab Emirates increased, with a gram priced at 503.79 AED, compared to 502.06 AED on Friday. The price for a tola rose to 5,876.07 AED from 5,855.90 AED.
The gold price for different units in AED is as follows: 1 gram – 503.79, 10 grams – 5,037.87, tola – 5,876.07, and troy ounce – 15,669.12. FXStreet calculates gold prices in the UAE by adjusting international prices to the local currency and units. Prices are updated daily and may differ locally.
Gold As A Safe Haven
Gold serves as a store of value and a medium of exchange, often seen as a safe-haven asset during turbulent times. It is also a hedge against inflation and depreciating currencies. Central banks, the largest holders of gold, added 1,136 tonnes worth roughly $70 billion in 2022.
Gold typically has an inverse correlation with the US Dollar and US Treasuries. Its price is influenced by geopolitical instability, recession fears, and interest rates, with a strong US Dollar likely controlling its price and a weaker Dollar driving it up.
Given the minor uptick in gold prices, we see this as part of a larger trend that derivative traders should watch closely. This movement reflects gold’s classic role as a safe-haven asset in turbulent times. The current geopolitical tensions and market uncertainty are making investors nervous, pushing them toward tangible assets.
We should note the continued heavy buying from central banks, a trend that has accelerated since the record purchases we saw back in 2022. Recent World Gold Council data for the third quarter of 2025 showed that central banks, particularly those in emerging markets, added another 220 tonnes to their reserves. This sustained demand creates a solid floor for gold prices, suggesting that any significant dips will likely be bought up quickly.
Interest Rate Impact On Gold
Looking back at the aggressive interest rate hikes by the US Federal Reserve in 2022 and 2023, the current environment in late 2025 is starkly different. With the market now pricing in a high probability of rate cuts in the first half of 2026 to combat slowing economic growth, the appeal of non-yielding gold is increasing. This anticipation is putting downward pressure on the US Dollar, providing a further tailwind for the precious metal.
Recent inflation figures have also been a concern, with the last Consumer Price Index report showing a stubborn 3.4%, higher than many had forecast. This renewed inflation fear, combined with a recent pullback in equity markets, reinforces gold’s position as a hedge. For traders, this environment suggests that buying dips in gold futures could be a sound strategy over the coming weeks.
Considering this outlook, traders might find value in using options to express a bullish view while managing risk. Long call options on gold futures or ETFs would allow for upside participation with a defined, limited risk. This strategy capitalizes on the potential for a significant price move driven by the expected loosening of monetary policy and persistent safe-haven demand.
