Insights 
VT 
Gold prices in the United Arab Emirates declined on Monday, according to FXStreet data. The cost per gram was 480.56 AED, dropping from 485.58 AED last Friday.
The price per tola also decreased, reaching 5,604.87 AED from 5,663.67 AED. For larger purchases, 10 grams cost 4,805.38 AED and a troy ounce was priced at 14,947.95 AED.
Fxstreet Adjustments To Local Market Rates
FXStreet adjusts international prices in USD to the local AED currency. These updates occur daily based on market rates at the time of publication.
Gold is regarded as a safe-haven asset and a hedge against inflation, without relying on any specific government or issuer. Central banks, the major buyers of gold, purchased 1,136 tonnes worth around $70 billion in 2022, a historic high.
Gold prices often move opposite to the US Dollar and US Treasuries. The yellow metal tends to rise with lower interest rates and falls with higher ones, its price influenced by US Dollar performance.
While geopolitical instability can push gold prices up, a strong US Dollar can hold them steady. In contrast, a weaker dollar often leads to price increases.
Gold Price Influences And Market Strategies
Given the dip in gold prices to AED 480.56 per gram on October 27, 2025, we are seeing the market react to signs of easing US-China trade tensions. This optimism is boosting riskier assets and reducing the appeal of safe havens like gold. Derivative traders should note this immediate bearish sentiment, as it could pressure prices further in the coming days.
For the short term, this suggests that put options could offer a tactical advantage, or it may be a time to consider covered calls on existing long positions to generate income. We should watch key support levels closely, as a break below the recent trading range could trigger more pronounced selling. The current environment is being driven by risk-on sentiment, making long gold positions vulnerable.
However, we must also consider the upcoming Federal Reserve meeting, as interest rate policy remains a primary driver for the non-yielding metal. The market is currently pricing in a 70% probability of the Fed holding rates steady through the end of the year, a stance that has provided a floor for gold throughout 2025. Any surprise shift in that outlook could bring significant volatility.
Furthermore, the underlying demand from central banks continues to be a powerful supportive factor that cannot be ignored. Looking back, central banks set a record for gold purchases in 2024, accumulating over 1,050 tonnes, with emerging markets leading the charge. This strategic buying provides a strong, long-term cushion against any substantial price collapses.
Geopolitical risks also remain a wild card that could quickly reverse the current trend. While the US-China talks are positive, ongoing instability in other regions could reignite demand for gold’s safe-haven qualities without warning, similar to the price spikes we witnessed during flare-ups in 2023. This dynamic suggests hedging against a sudden reversal is prudent.
Finally, the inverse relationship with the US Dollar is critical to watch. A strengthening dollar, driven by a resilient US economy, will act as a headwind for gold prices priced in USD. We should keep a close eye on the Dollar Index (DXY), as its direction will likely dictate gold’s ability to recover from this recent dip.
