Insights 
VT 
Gold prices in the United Arab Emirates rose on Monday. The price per gram increased to 384.46 AED from 382.67 AED on Friday.
Gold price per tola climbed to 4,484.31 AED from 4,463.35 AED last week. The exchange rate updates the values daily based on market rates.
Geopolitical Influence
Russian President Vladimir Putin spoke about ending the Ukraine conflict. Meanwhile, Israeli Prime Minister Netanyahu vowed responses to Yemen’s Houthi missiles.
US President Donald Trump imposed a 100% tariff on foreign films. This uncertainty boosts safe-haven flows, benefiting gold.
Traders adjusted bets against a US Federal Reserve rate cut. Strong US job data showed 177K jobs added in April.
The US Dollar remains weak following tariff news. This supports the XAU/USD pair, ahead of the upcoming Federal Reserve policy meeting.
Gold often inversely correlates with the US Dollar and Treasuries. Prices rise with geopolitical instability or lower interest rates.
Central banks are major gold buyers, with 1,136 tonnes added in 2022. Countries like China and India are increasing their gold reserves.
Market Positioning
What the article is really unpacking is the number of variables at play, each nudging gold prices in its own way, with some more forcefully than others. The rise in price per gram and per tola in the UAE reflects this. Those changes are not merely local quirks; they’re downstream effects of broader movements. So when gold inched up by nearly two dirhams per gram, it’s not just a footnote—it’s a reaction to actual risk preferences shifting globally.
At the centre of it all are geopolitical tremors: updates from Russia and Israel are pushing risk sentiment into less comfortable territory. President Putin’s remarks on Ukraine weren’t brushed off as rhetoric—they were processed as early signs of tension relief. Conversely, Netanyahu’s remarks to retaliate against missile attacks have added more weight to risk-off sentiment. Together, such moves keep safe-haven demand buoyant. We must weigh these comments not only at face value but in the context of how they influence capital flows and policy expectations.
In the background, policy noise from Washington creates more volatility. The 100% tariff bump on foreign films—though limited in scope—signals broader protectionist leanings. And while the inflationary consequences may be minor directly, the measure contributes to an atmosphere of trade friction that investors don’t usually take lightly.
The market is still digesting the April jobs data. A 177,000 figure, while not stellar, is more than sufficient to keep expectations of rate cuts on pause. Such data—alongside the delayed Fed pivot rhetoric—affects gold indirectly by propping up US yields. Yet, if yields hold steady while the dollar softens, gold finds some space to drift higher without requiring fresh triggers.
The dollar’s recent weakness, particularly post-tariff news, has lent further support to gold denominated in USD. That’s foundational maths—when the greenback loses value, it takes more of it to buy the same ounce of metal. The XAU/USD pair continues to reflect this seesaw relationship.
Rates and geopolitics aside, there is a structural undercurrent that shouldn’t go ignored: central bank buying. It’s not anecdotal when 1,136 tonnes are bought in a 12-month window. We note that China and India remain consistent as buyers, maintaining upward pressure on demand even when short-term signals are mixed. That floor of structural demand can temper volatility, especially during episodes of profit-taking.
All this means that derivative positioning has to remain nimble. We would tilt towards caution before any firm US central bank signals arrive, but continue to look for intraday moves that echo dollar sentiment and front-end yield shifts. Volatility may not spike immediately, but the ingredients for sharp intraday shifts are there.
