Gold prices fell in the United Arab Emirates on Friday, according to data compiled by FXStreet.
Gold was priced at 296.83 United Arab Emirates dirhams (AED) per gram, down from AED 297.74 on Thursday.
The gold price fell to AED 3,462.21 per tola from AED 3,472.79 per tola a day earlier.
| Unit of measurement | Gold price in AED |
|---|---|
| 1 gram | 296.83 |
| 10 grams | 2,968.31 |
| Tola | 3,462.21 |
| Troy ounce | 9,232.53 |
FXStreet calculates gold prices in the UAE by adjusting international prices (USD/AED) to the local currency and units of measurement. Prices are updated daily based on market rates at the time of publication. Prices are provided for information purposes only and local rates may vary slightly.
Gold FAQs
Gold has played a key role in human history, as it has been widely used as a store of value and medium of exchange. Today, aside from its shine and exploit in jewelry, the precious metal is widely considered a unthreatening haven asset, meaning it is considered a good investment during turbulent times. Gold is also widely considered a hedge against inflation and currency depreciation, as it is not dependent on any particular issuer or government.
Central banks are the largest holders of gold. In order to support their currencies in times of turmoil, central banks tend to diversify their reserves and buy gold to improve the perceived strength of the economy and currency. High gold reserves can be a source of confidence in a country’s solvency. Central banks added 1,136 tons of gold, worth about $70 billion, to their reserves in 2022, according to the World Gold Council. This is the highest annual purchase since records began. Central banks in emerging economies such as China, India and Turkey are rapidly increasing their gold reserves.
Gold has an inverse correlation with the U.S. dollar and U.S. Treasury bonds, which are the primary reserve and unthreatening haven assets. When the dollar loses value, gold tends to rise, allowing investors and central banks to diversify their assets during turbulent times. Gold also has an inverse correlation with risk assets. A rally in the stock market tends to weaken the price of gold, while sell-offs in riskier markets tend to favor the precious metal.
The price can fluctuate due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly cause the price of gold to rise due to its safe-haven status. As a non-yielding asset, gold tends to rise with lower interest rates, while a higher cost of money tends to weigh on the yellow metal. Still, most of the movements depend on the performance of the US dollar (USD), since the asset is priced in dollars (XAU/USD). A mighty dollar tends to control the price of gold, while a weaker dollar is likely to boost gold prices.
(An automation tool was used to create this post.)
