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VT 
Gold prices in the United Arab Emirates increased on Wednesday, as per FXStreet data. The rate reached 487.86 AED per gram, slightly higher than Tuesday’s 487.00 AED, with a tola rising from 5,680.23 AED to 5,690.33 AED.
Current gold prices in AED include: 1 gram at 487.86, 10 grams at 4,878.63, a tola at 5,690.33, and a troy ounce at 15,174.38. Market updates note the US government shutdown persists and US-China trade relations are evolving with talks about new tariffs and negotiations.
Gold Pricing and Market Dynamics
FXStreet adapts international gold prices to UAE currency and units, updating data daily. Prices are referenced only and may slightly differ locally.
Gold is historically valued as a stable investment, especially during economic turbulence, acting as a hedge against inflation and currency devaluation. Central banks are substantial gold purchasers, adding 1,136 tonnes worth around $70 billion in 2022, the most on record.
Gold inversely correlates with the US Dollar and Treasuries, rising when the Dollar weakens. Price changes are influenced by geopolitical shifts and interest rate variations, as Gold’s reliance on the Dollar affects its valuation.
We are seeing persistent geopolitical friction, including stalled talks with Russia and renewed tariff threats against China. This kind of uncertainty typically pushes investors toward safe-haven assets. Consequently, gold is finding support as a hedge against these global risks.
Financial Strategies on Rising Gold Prices
The market is now pricing in a near-certainty of a Federal Reserve interest rate cut next week, with another expected before year-end. As a non-yielding asset, gold becomes more attractive when interest rates fall, reducing the opportunity cost of holding it. Looking back, we saw a similar dynamic in 2019 when the Fed’s dovish pivot preceded a significant rally in precious metals.
A dovish Federal Reserve policy directly impacts the US Dollar, which has already seen a 2.5% decline this quarter against a basket of major currencies. Since gold is priced in dollars, a weaker greenback provides a direct tailwind for higher prices. We should therefore consider strategies that benefit from this inverse relationship in the coming weeks.
We must not overlook the consistent demand from central banks, which are major players in the gold market. Following the record-breaking purchases we saw in 2022, central banks have continued their net buying spree through 2025, with recent reports from the World Gold Council showing another 220 tonnes added in the third quarter. This institutional demand creates a strong underlying support level for prices.
Given the convergence of lower expected interest rates and heightened geopolitical risk, traders should consider positioning for upward movement in gold. Buying call options or establishing bull call spreads could be an effective way to leverage this anticipated rally. These strategies offer defined risk while providing exposure to potential price increases through December.
