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01 November 2024

Latest gold rates in UAE

Published
By Dubai city of gold

Gold rates for AS ON  1 NOVEMBER 2024 Rate in AED per gm

  • 24K AED    333.25
  • 22K AED    308.50
  • 21K AED    298.75
  • 18K AED    256.00

The United Arab Emirates (UAE) boasts a thriving gold market, firmly establishing itself as a key player in the global gold trade. With over a third of its imports consisting of gold reserves, the UAE has emerged as a significant hub for gold transactions. The primary markets for the UAE include India, Switzerland, and the USA, with gold imports reaching a substantial $20 billion in 2019, marking a notable increase from the preceding year.

Supply and Demand Dynamics

In the UAE, the demand for gold is predominantly fueled by consumer purchases of jewelry, representing nearly half of all gold transactions. Furthermore, institutional investors and banks play a pivotal role, acquiring substantial amounts of gold during periods of economic uncertainty or when profit potential arises. Despite domestic production, which is supplemented by imports primarily from Africa and Europe, the UAE relies heavily on global markets to meet its gold supply requirements.

Future Trajectories

Looking ahead, the UAE's gold market is poised to navigate various geopolitical and economic factors that may influence its trajectory. Fluctuations in oil prices and concerns regarding global economic growth could potentially impact demand for gold products. Moreover, the ongoing transition from physical gold to digital investments may present challenges to the UAE's position as a prominent trading hub for precious metals. Nevertheless, the nation's robust infrastructure, supportive governmental policies, and active engagement in international initiatives signal a promising outlook for its continued dominance in the industry.

Understanding Carats/Karats

The purity of gold is measured in carats or karats (symbol/abbreviation K), with pure gold denoted as 24K. Pure gold, while malleable and ductile, is unsuitable for jewelry due to its softness. Therefore, gold is typically alloyed with other metals to enhance its durability. Here's a breakdown of common gold alloys:

  • 24K: Pure gold.
  • 22K: Alloy containing 22 parts pure gold and two parts other metals, with a gold percentage of 91.7 (22/24).
  • 21K: Alloy comprising 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).