Gold price in United Arab Emirates: Rates on May 8

Gold prices rose in United Arab Emirates on Thursday, according to data compiled by FXStreet. The price for Gold stood at 399.74 United Arab Emirates Dirhams (AED) per gram, up compared with the AED 397.36 it cost on Wednesday. The price for Gold increased to AED 4,662.52 per tola from AED 4,634.68 per tola a day earlier. Daily Digest Market Movers: Gold price benefits from reviving safe-haven demand, renewed USD selling US President Donald Trump said on Wednesday that he was not open to lowering the 145% tariffs imposed on China in order to encourage trade-war negotiations. This keeps a lid on the optimism led by the announcement of US-China trade talks later this week and lends some support to the safe-haven Gold price. Airports were shut down across Moscow amid a massive Ukrainian drone attack ahead of Russian President Vladimir Putin’s unilaterally announced three-day truce. Furthermore, Ukraine said that Russia had launched guided bombs nearly three hours after the ceasefire came into force earlier this Thursday. Meanwhile, the Israeli military said that it had fully disabled Yemen’s main airport in the capital, Sanaa, which is controlled by the Houthis. In response, a member of the Houthis’ top political body said that the response to Israel’s attacks is coming. This keeps geopolitical risks in play and further underpins the XAU/USD pair. The Federal Reserve, as was widely expected, held its key interest rate unchanged in a range between 4.25%-4.5% at the end of a two-day monetary policy meeting on Wednesday. In the accompanying statement, the US central bank noted that the uncertainty about the economic outlook has increased further. In the post-meeting press conference, Fed Chair Jerome Powell also noted that there is a great deal of uncertainty about tariffs and said that the right thing to do is wait for further clarity. This suggests that the US central bank is not leaning toward cutting rates anytime soon, though it failed to impress the US Dollar bulls. Trump said on Truth Social that he will announce a major trade deal, the first of many, with representatives of a big and highly respected country on Thursday. This remains supportive of a generally positive risk tone around the equity markets and could act as a headwind for the precious metal. The market focus will remain glued to Trump’s press conference at 14 GMT in the Oval Office. Apart from this, Thursday’s release of the US Weekly Initial Jobless Claims data will influence the USD price dynamics and provide a fresh impetus to the XAU/USD pair later during the North American session. FXStreet calculates Gold prices in United Arab Emirates by adapting international prices (USD/AED) to the local currency and measurement units. Prices are updated daily based on the market rates taken at the time of publication. Prices are just for reference and local rates could diverge slightly. Gold FAQs Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government. Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves. Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal. The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up. (An automation tool was used in creating this post.) Source: https://www.fxstreet.com/news/united-arab-emirates-gold-price-today-gold-rises-according-to-fxstreet-data-202505080456