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Gold Prices Fall in UAE as Oil Prices Rise, According to FXStreet Data
Developing
In Short: Gold prices in the United Arab Emirates declined on Monday, according to data from FXStreet.
Gold prices in the United Arab Emirates fell on Monday, according to data compiled by FXStreet. The price for Gold stood at 519.25 United Arab Emirates Dirhams (AED) per gram, down from AED 523.16 on Friday. This decline comes amidst a rally in the stock market, which tends to weaken Gold prices, and a recent uptick in Oil prices, which stoke inflationary concerns and call for policy tightening globally.
Central banks around the world added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This trend is particularly notable among emerging economies such as China, India, and Turkey, which are increasing their Gold reserves to support their currencies and improve the perceived strength of their economies. High Gold reserves can serve as a source of trust for a country's solvency.
Gold has historically played a key role in human history as a store of value and medium of exchange. It is also widely seen as a hedge against inflation and against depreciating currencies, as it does not rely on any specific issuer or government. In turbulent times, central banks aim to support their currencies by diversifying their reserves and buying Gold, which can improve the perceived strength of the economy and the currency.
The inverse correlation between Gold and the US Dollar and US Treasuries, both major reserve and safe-haven assets, is another factor influencing Gold prices. Despite the recent decline, the price for Gold increased to AED 6,109.41 per tola from AED 6,042.34 per tola a day earlier, according to new data from Fxstreet. This fluctuation highlights the dynamic nature of Gold prices and the various factors that influence them.
What's confirmed
- A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal. (An automation tool was used in creating this post.) Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet.
What's still developing
- Nothing material beyond the confirmed record.