Dubai, UAE – March 12, 2025 – Gold prices in the United Arab Emirates have experienced a modest increase of AED0.5 per gram today, reflecting a cautious global market as investors anticipate critical U.S. inflation data that could influence future monetary policies.
UAE Gold Price Movements
As of 9:00 AM local time, the price of 24K gold in the UAE stood at AED352.72 per gram, up from AED352.22 the previous day. Other gold variants also saw slight upticks:
- 22K gold: Increased to AED323.09 per gram from AED322.59.
- 21K gold: Rose to AED308.63 per gram from AED308.13.
- 18K gold: Edged up to AED264.54 per gram from AED264.04.
This upward movement aligns with global trends, where spot gold prices have remained relatively stable.
Global Gold Market Overview
On the international front, spot gold held steady at $2,915.65 per ounce as investors exercised caution ahead of the release of U.S. Consumer Price Index (CPI) data. This data is anticipated to provide insights into the Federal Reserve’s future interest rate decisions amid ongoing trade tensions and concerns over economic growth.
The U.S. dollar index remained near a four-month low, making gold more affordable for holders of other currencies. Additionally, benchmark 10-year U.S. Treasury yields have declined, further influencing gold’s appeal as a safe-haven asset.
Influencing Factors
Several key factors are currently impacting gold prices:
- Trade Tensions: The recent announcement by President Donald Trump to double tariffs on Canadian steel and aluminum imports to 50% has heightened fears of a potential recession, leading to significant sell-offs in global stock markets.
- Inflation Concerns: The impending U.S. CPI data release is expected to shed light on inflation trends, which could influence the Federal Reserve’s monetary policy decisions. Higher inflation typically boosts gold’s appeal as a hedge against rising prices.
- Central Bank Policies: Central banks worldwide, particularly in emerging markets, have been increasing their gold reserves, contributing to sustained demand for the precious metal.
Market Outlook
Analysts suggest that gold prices need to break out of the current range of $2,830 to $2,960 per ounce to establish a clear directional trend. The upcoming U.S. inflation data and the Federal Reserve’s response will be pivotal in determining gold’s trajectory in the near term.
In the UAE, gold remains a popular investment and a significant component of cultural traditions. The slight increase in prices may encourage investors and consumers to monitor global economic indicators closely as they make purchasing decisions.
Conclusion
The AED0.5 increase in UAE gold prices reflects broader global economic sentiments marked by trade uncertainties and anticipation of key economic data releases. As markets await the U.S. inflation report, gold continues to serve as a barometer for investor confidence and economic stability.
