UAE Gold Prices Rise Amid Central Bank Buying Spree

Gold prices rose in the United Arab Emirates on Wednesday, according to data from FXStreet. The price for gold stood at 512.99 UAE Dirhams (AED) per gram, up compared with the AED 511.76 it cost on Tuesday.

The price for gold increased to AED 5,983.44 per tola from AED 5,969.03 per tola a day earlier. FXStreet calculates gold prices in the UAE by adapting international prices (USD/AED) to the local currency and measurement units.

Gold has played a key role in human 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.

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.