Insights 
VT 
Gold prices in the United Arab Emirates increased on Friday. The price for Gold per gram rose from 390.34 AED to 391.84 AED, while the price per tola climbed to 4,570.33 AED from 4,552.89 AED.
Geopolitical developments impact commodity markets, with Gold often seen as a safe haven during such times. A trade deal was announced between the US and the UK, but US tariffs remain at 10%. The US is considering reducing tariffs on China, which could influence the XAU/USD pair.
Federal Reserve Impact
The Federal Reserve announced it is unlikely to cut interest rates soon. This news led to a rise in the US Dollar, affecting Gold prices. However, geopolitical tensions involving Russia, Ukraine, and other regions continue to support Gold’s safe-haven appeal.
Central banks are major Gold holders, diversifying their reserves to bolster economic stability. In 2022, they added 1,136 tonnes of Gold, marking a record-high year for purchases. Gold prices are inversely related to the US Dollar and stock markets, often rising with lower interest rates.
Last week closed with a measured pickup in gold prices across the United Arab Emirates. Per gram, rates ticked up modestly—settling around 391.84 AED. Tola values moved in tandem, reaching just over 4,570 AED by end of day Friday. It wasn’t a sweeping move, but it suggests that some underlying factors are pressing into the market with enough weight to lift spot prices.
Gold’s Response to Global Politics
We’ve observed that commodity pricing, particularly that of gold, often responds to shifts in global politics faster than broader financial instruments. A recently formalised trade agreement between Washington and London might come across as supportive to broader trade sentiment, but with tariffs still sitting unchanged at 10%, its impact remains somewhat contained. On the other hand, there’s potential movement from Washington toward easing tariffs on Beijing—a development worth tracking, as any such change could send quick ripples through the gold-dollar equation.
The Federal Reserve, meanwhile, stuck firmly to its stance on rates. No cuts appear to be on the horizon in the near term. That message underpinned the strength of the dollar last week, applying downward pressure on precious metals. Nevertheless, the wider geopolitical atmosphere offers a different push. Events between Moscow and Kyiv, and unrest in select other zones, continue to foster caution, and it’s caution that often triggers flows into gold. It acts as insurance. We see this pattern consistently repeated.
One cannot ignore the position central banks have taken over the last couple of years. In 2022, they added more than 1,100 tonnes to their gold holdings—a record by volume. Movements like these go beyond routine adjustments. They’re defensive, strategic steps to fortify financial buffers. It’s not about price speculation, it’s a stronger message of preference for hard assets when the broader monetary system appears under pressure.
Gold’s inverse link with both the USD and equity indices remains intact. When yields turn unattractive or stock performance wavers, demand in gold tends to climb. But for now, rates haven’t dropped, and markets—especially in equities—still show resilience. That tension puts us in a window where gold may consolidate before the next defined move.
Through the next few weeks, vigilance remains key. Price action in metals might not be erratic, but the signals are layered—monetary policy, geopolitical flashpoints, reserve allocations. Traders tuned in to those levers, rather than just reacting to headlines, stand better positioned to extract returns. Regular calibration against these underlying factors will be required.
