Insights 
VT 
Gold prices in the United Arab Emirates decreased on Tuesday, as reported by FXStreet. The price per gram dropped to AED 512.39 from AED 514.35, and per tola, it decreased to AED 5,976.43 from AED 5,999.31.
The US Dollar continued to gain traction for the third day, affecting Gold prices during the Asian session. Eased tensions between the US and China also contributed to reduced demand for Gold, traditionally a safe-haven asset.
US Trade Policies and Federal Reserve Expectations
US trade policies were in focus, with potential tariffs on China nearing 155% if no agreement is reached. However, expectations of a 25-basis-point rate cut by the Federal Reserve in October and December might bolster Gold prices amid economic uncertainties.
The ongoing US government shutdown reached its third week, impacting market dynamics as the Senate failed again to vote for reopening. Geopolitical tensions were evident, with Russia’s demand for Ukraine to concede Donetsk Oblast being firmly rejected by Ukraine.
Traders awaited upcoming US consumer inflation figures, potentially influencing the Federal Reserve’s rate decisions. FXStreet adapts Gold prices in the UAE based on international prices, using local currency and units, although actual rates may vary slightly.
In 2022, central banks globally acquired 1,136 tonnes of Gold, indicating reliance on it during uncertain times. Gold’s price generally responds inversely to the USD and fluctuates according to geopolitical and economic conditions.
Recent Market Trends
The current volatility in gold, with prices hovering around AED 685.20 per gram, feels familiar when we look back at similar daily dips from years past. A strengthening US Dollar is putting some immediate pressure on the metal, a dynamic that has consistently influenced pricing. This short-term weakness, however, might present an opportunity for derivative traders to position for future uncertainty.
We recall periods when the market was pricing in aggressive Fed rate cuts, which acted as a tailwind for gold. Today, the situation is more complex, with the CME FedWatch tool showing an 85% probability of interest rates holding steady into early 2026. This persistent “higher for longer” stance from the Fed is creating a headwind, capping significant upward price movement for now.
The nature of geopolitical risk has evolved, though its impact on gold as a safe haven remains. While the broad tariff threats of the Trump administration have subsided, ongoing US-China tensions over technology and strategic resources continue to simmer, creating underlying market anxiety. The unresolved conflict in Ukraine, now in a protracted state, adds another layer of uncertainty that supports holding defensive assets.
Traders are now closely watching for this week’s US consumer inflation figures, as the latest CPI reading of 3.1% remains stubbornly above the Fed’s target. Beneath these daily market movements, we see a powerful long-term trend of central bank accumulation, with over 800 tonnes added to global reserves this year alone. This strategic buying provides a strong floor for gold prices and signals a continued shift away from the US Dollar.
