UAE Gold Prices Dip Amid Central-Bank Buying Frenzy

Gold prices in the United Arab Emirates slipped on Friday to AED 541.15 per gram, down from Thursday's price of AED 543.27. The decrease was seen as a strategic buying opportunity by some market participants, with historical data suggesting that minor pullbacks often precede significant upward moves.

The wider backdrop for gold includes continued central-bank demand, with the World Gold Council reporting that central banks added 1,136 tonnes worth around $70 billion in 2022, the highest annual purchase on record. Gold is typically tracked against the US Dollar and US Treasuries, with drivers including interest rates, inflation dynamics, and geopolitical risk.

FXStreet's data also showed that the price per tola slipped to AED 6,311.86 from AED 6,336.57, while the 10-gram price was at AED 5,411.49 and a troy ounce at AED 16,831.58.

With gold currently valued at 16,831.58 AED per troy ounce, some traders are recommending using defined-risk strategies like bull call spreads to manage short-term volatility due to fluctuations in the US Dollar.