Insights 
VT 
Gold prices in the United Arab Emirates rose, with the rate reaching AED 391.35 per gram, up from AED 389.12 the day before. Similarly, the price per tola increased to AED 4,564.60 from AED 4,538.64.
Gold’s rise is supported by ongoing safe-haven buying and a weaker US Dollar. The US House of Representatives passed a tax and spending bill expected to increase federal debt significantly over the coming decade.
Impact Of Trade Tensions
Heightened US-China trade tensions and the potential for further Federal Reserve policy easing continue to affect the US Dollar. A drop in US unemployment claims positively impacted the US labour market, providing some lift to the Dollar.
S&P Global reported a rebound in the US economy, with an increase in private sector activity; Composite PMI rose to 52.1 in May. Furthermore, geopolitical risks, including tension with Russia and Middle East incidents, continue to support gold as a safe-haven asset.
Upcoming US New Home Sales data and Federal Open Market Committee speeches will influence USD demand. Gold has an inverse relationship with the US Dollar and Treasuries, often rising when the Dollar weakens.
Given the sustained demand for gold and the downtrend seen recently in the US Dollar, this sets a clearer context for price direction in the nearer term. With the price per gram crossing AED 391 in the UAE, moving up from AED 389 the previous day, buyers appear to have returned ahead of key data and uncertainty abroad. Safe-haven appetite continues to grow amid mixed economic signals.
Economic Reactions And Investor Strategies
The House’s decision to approve a substantial tax and spending package in the US will have obvious implications for fiscal projections. This influx of funding, largely debt-financed, will only add strain to Dollar confidence over time. From our view, this adds weight to gold’s longer-term appeal among hedgers.
Trade negotiations between the US and China remain fraught, adding another pressure point onto the Dollar. These developments come as growing speculation surrounds the Federal Reserve’s direction on interest rates. Although no official shift has been made, the mere possibility of more dovish rhetoric exerts downward pressure on yields and favours metals.
At the same time, the drop in jobless claims showed some resilience in the employment sector. While that briefly supported the Dollar, PMI results from S&P Global soon dominated the headlines. A composite reading above 50 again signals growth, particularly in private enterprises. Still, this doesn’t undo geopolitical discomfort brewing in several regions. Notably, instability in Eastern Europe and areas of the Middle East continues to foster caution among longer-term investors.
From our angle, this means traders should expect higher volatility in gold-linked contracts, particularly in the days surrounding Federal Open Market Committee discussions and housing figures. Sentiment will likely remain data-driven but tilted towards protection rather than risk-taking.
Gold’s price often runs in the opposite direction of the Dollar and Treasury returns. This means if the Dollar weakens further, gold has room to extend its gains. Move timing becomes central here. Eyes should remain on forward guidance rather than just headline economic results. Volatility in the bond market could further fuel momentum in precious metals, influencing daily volumes and swing movements.
We also see that treasury yields are holding under pressure, particularly as expectations begin to price in pauses or slight reversals in policy. For anyone engaged in futures or options linked to precious metals or currencies, there is room here—but the reliance on data means whipsaws could become more common. Carefully managing delta exposure around economic reports will be important.
As the market reacts to incoming housing data and speeches from central committee members, any clear tone will likely reflect directly into metals. For now, momentum indicators are leaning towards strength in gold. Data usage should be precise, and positioning tighter than average. Take note: fundamentals and liquidity are beginning to diverge slightly. That can offer opportunity, but only with a strict read of daily drivers and calendar risk.
