Latest Gold Rates in UAE

The United Arab Emirates (UAE) has a thriving gold market and is firmly establishing itself as a major player in the global gold trade. With over a third of imports made up of gold reserves, the UAE has become a major hub for gold transactions. Key markets for the UAE include India, Switzerland and the US, with gold imports reaching a significant $20 billion in 2019, marking a notable increase from the previous year.

Supply and demand dynamics

In the UAE, gold demand is mainly fueled by consumer purchases of jewelry, which represents almost half of all gold transactions. Furthermore, institutional investors and banks play a crucial role, acquiring significant amounts of gold during periods of economic uncertainty or when profit potential arises. Despite domestic production, which is supplemented by imports mainly from Africa and Europe, the UAE is heavily dependent on global markets to meet its gold supply needs.

Future trajectories

Looking ahead, the UAE gold market is poised to navigate various geopolitical and economic factors that could influence its trajectory. Fluctuations in oil prices and concerns about global economic growth could potentially impact demand for gold products. Furthermore, the continued transition from physical gold to digital investments could challenge the UAE’s position as a prominent trading center for precious metals. Nevertheless, the country’s robust infrastructure, supportive government policies and active involvement in international initiatives indicate promising prospects for the country’s continued dominance in the sector.

Understanding Carat/Carat

The purity of gold is measured in carats or karats (symbol/abbreviation K), with pure gold being referred to as 24K. Although pure gold is malleable and tough, it is not suitable for jewelry due to its softness. Therefore, gold is typically alloyed with other metals to increase its durability. Here is an overview of common gold alloys:

• 24K: Pure gold.
• 22K: Alloy consisting of 22 parts pure gold and two parts other metals, with a gold percentage of 91.7 (22/24).
• 21K: Alloy consisting of 21 parts pure gold and three parts other metals, with a gold percentage of 87.5 (21/24).
• 18K: Alloy composed of 18 parts pure gold and six parts other metals, with a gold percentage of 75 (18/24).
• 14K: Alloy consisting of 14 parts pure gold and ten parts other metals, with a gold percentage of 58.3 (14/24).
• 9K: Alloy containing nine parts pure gold and 15 parts other metals, with a gold percentage of 37.5 (9/24).