Gold Rate in UAE Today

Type

Gold Rate (in AED)*

Ounce

6561.96

24 Karat

216.50

22 Karat

203.25

21 Karat

194.00

18 Karat

166.25

* The gold rates are subject to changes as per the prevailing market prices.

Impact of COVID-19 on Gold Rate in UAE 

The demand for gold jewelry has come down to the worst level globally. The high rates and an entire halt on the retail activities led to the hardest hit on the jewelry sector. It seems pretty certain that the gold retail markets in the UAE will have the effects of the coronavirus pandemic for the full year. With the strain on the economies and the risk on jobs everywhere, it will be hard for even the regular buyers of gold to approach the stores for shopping. 

For a lot of expats in the UAE, this glittery metal is acting as more than only a piece of jewelry during this pandemic. In the case of these consumers, it has turned out to be something as helpful as cash. They are using the high value of gold for selling and pocketing the much-needed money; hence, making up for the sudden reduction in salaries and loss of employment.

Significance of Gold in the UAE

On turning the pages towards history, it can be seen that there is a deep-rooted significance of gold. This precious metal has the ability to allure people from all corners of the world, let alone the UAE. The golden glow has successfully made a place in the hearts and homes of the people alike.

It is not just a matter of cultural significance, but also an investment tool for the people, and the safest one at that (as per their perception). It is considered to be a protector against tough times, pushing more and more people to invest in it.

What is the Difference Between Gold Rate in UAE and India?

 

Gold Rate in Dubai

Gold Rate in India

24K Gold

AED 216.50

INR 48,750.00

22K Gold

AED 203.25

INR 47,550.00

* The gold rates are subject to changes as per the prevailing market prices.

Factors Affecting Gold Price in UAE

From birthdays to weddings to festivals, there’s hardly any auspicious occasion, which can be complete without using this golden metal. Most people look up to it as a tool for investment that can be put to use at the time of a financial crisis.

The gold rate in UAE keeps fluctuating, and hence, it becomes important for the customers to know the factors affecting the prices. One sure shot thing is that the rates of this metal are considerably affected by the global market.

UAE is one of the largest producers as well as consumers of gold; hence, any movement of rates in the international market may have a huge effect on its prices in the Emirates.

1) Gold Production

There is a large scale of gold mining in the UAE and any changes in the gold production, no matter what the reason is, will have an impact on its prices.

2) Demand for Gold

UAE witnesses a huge production and export of gold. Countries such as China, India, and the US are major consumers of this metal, especially in the form of jewelry. The investment preferences, economic growth, and festive season in these nations have a great impact on Gold Rate in UAE today.

3) Global Market

Any global changes in the gold price impact the rate of the yellow metal in the UAE. For instance, at the time of political chaos, the gold prices may increase as opposed to that in peaceful times.

4) The Inflation Factor

In comparison to currency, gold is almost a stable character. It holds significant value and can be used for hedging inflation. Therefore, most of the investors prefer holding on to gold instead of currency. Consequently, the demand for gold rises with the rise in inflation and vice versa. And the gold rate in UAE will rise with the rise in its demand and vice versa.

How is the Gold Price in UAE Affected by Changes in the US Dollar?

The gold rate is checked in terms of the US Dollar throughout the world. It can be seen that gold has an inverse relationship with US Dollars. Therefore, whenever the value of dollar rises, the gold prices fall and whenever the value dollar falls, the gold prices rise.

You can also Check Gold Rate in Dubai

What are the Measuring Units for Gold Across the Globe?

Here are several commonly used gold measuring units throughout the world.

1) Troy Ounce (oz t)

This measurement unit is commonly used for measuring the weight of precious metals like gold.

1 troy ounce = 31.1034768 grams

These days, the troy ounce is the only unit for the measurement of troy weights system. Moreover, the price for gold fixing is dependent upon the unit of troy ounce.

2) Pennyweight (dwt)

This is the unit of mass and is majorly used for measuring precious metals in the North American region.

1 dwt = 1.55517384 grams

3) Gram (g)

This is a metric system for the unit of mass.

1 gram = 0.001 kilogram

4) Tola

This is a traditional measurement unit mostly used in South Asia. It can be classified as the British Indian weight system.

1 Tola = 11.6638 grams (approximately)

5) Tael (or tahil)

It is commonly used in South-East Asia, Hong Kong, China, and more.

1 tael = 50 grams (in China)

1 tael = 37.799364167 grams (in Hong Kong)

1 tael = 37.5 grams (in Japan)

6) Baht

This unit is popularly used for gold measurement in Thailand.

1 Baht = 15.244 grams

7) Grain

It is also a traditional gold measurement unit that is dependent on the weight of one grain of wheat. It is the smallest weight measuring unit in the avoirdupois, apothecaries, and troy systems.

1 grain = 0.0648 grams

What is the Difference Between 18, 22, and 24 Karat of Gold in the UAE?

The table below shows the difference between the three categories.

Basis

24 Karat

22 Karat

18 Karat

Purity

24K gold is 100% pure, with no metal mixed in it.

22K gold has 22 parts as gold and the rest of the two are nickel, zinc, silver, and some alloys.

18K gold is 75% gold along with 25% other metals like silver, copper, and some alloys.

Usage

It is soft & pliable, hence, cannot be used for making jewelry. It is used for making bars, coins can be used in medical and electronic devices.

It is most commonly used for making gold jewelry.

It is usually used for making stone-studded pieces of jewelry and other diamond pieces.

Rates

It is the most expensive amongst the three.

The gold rate in UAE 22K is lower than 24K gold but higher than 18K gold.

18K gold price UAE is the least expensive amongst the three.

How to Check the Purity of Gold in the UAE?

There are many ways for checking the gold purity, some of which are listed below.

1) Checking for Discoloration

The purity of gold can be checked by seeing whether there is any discoloration on the metal or not. In case the piece is gold-plated and not pure, a different metal will become visible under it and the color will start fading.

2) Hallmark Stamping

The pure form of gold will always come with a stamp. For checking the gold purity, put is under a magnifying glass and look for the hallmark stamp.

3) Use a Magnet

It is a commonly known fact that gold is anti-magnetic. Therefore, if the piece pulls towards the magnet, then it is not pure for sure. However, this method is not always accurate, sometimes anti-magnetic metals are mixed with pure gold too. This test will need a strong magnet, which can be found in a hardware store or   in basic essentials like unused hard drive, kid’s toys, or purse latches.

How to Avail a Low Gold Rate in UAE?

There are a few basic tips that are to be considered while purchasing gold in UAE that will help the buyers in getting a low price.

  • Shopping Around: It is always advisable to shop around for jewelry before settling for any piece.
  • Selecting the Jewellery: After the buyers have selected the jewelry piece of their choice, they should be aware of the weight and the current market price in the UAE.
  • UAE Gold Price Today: The gold rates keep fluctuating. Hence, it is important to check the current rate in the market.
  • Being Aware of the Gold Types: The buyers must know the difference between different kinds of gold in terms of Karat, available in the market.
  • Haggling: If the buyers have a knowledge of the rate & make of the jewelry piece they like, negotiating for a better price would become easier for them.

What are the Reasons to Consider While Buying Gold in the UAE?

Here is a rundown on the reasons that make purchasing gold online a good option.

  • Competition: The gold dealers online have to face high competition, hence, they adjust their rates accordingly.
  • Overstated Prices: The physical gold outlets include high overhead costs in the price of gold. Hence, they will never offer gold at wholesale rates.
  • Convenience: While purchasing gold online, the buyers can easily shop around at multiple sellers and compare rates with a click of a few buttons only that too in the comfort of their home.
  • Sales Tax: The local sellers will charge sales tax, while the burden of taxes is lower on purchasing gold online.

You can also Check Gold Rate in Abu Dhabi

Is Gold a Smart Investment for Financial Growth in the UAE?

Whether there is a rise or fall in the gold rate in UAE, the gold outlets are always full of people who are not just shopping around for jewelry, but for investing in gold too. These investments can be done in the form of gold bars, coins, biscuits, and more. Here are the reasons that make gold a smart investment.

  • Rise in Value: The investors can exchange their gold for cash when they are in need of funds. However, they will receive the market price for gold in return. They can also use gold as collateral while opting for a secured loan.
  • Good Method for Saving: Since the resale value of gold is good, it is considered as a form of savings. The investors have the option of selling it whenever they wish to or need to.
  • Safe Investment: Gold may act as a safety net during the time of financial stress.

How is Gold Jewellery Price Different from Gold Biscuits or Raw Gold in the UAE?

The gold biscuits or simply raw gold is made using the pure 24 Karat gold. The reason is that the texture of 24K gold is soft and pliable. Hence, it does not work for making jewelry pieces.

Jewelry is usually carved out of 18K or 22K gold, which is more affordable as opposed to 24K gold. This causes difference in the prices of gold jewelry and gold biscuits or raw gold, making the latter more expensive.

How is the Gold Price in UAE Affected by Changes in the US Dollar?

The gold biscuits or simply raw gold is made using the pure 24 Karat gold. The reason is that the texture of 24K gold is soft and pliable. Hence, it does not work for making jewelry pieces.

Jewelry is usually carved out of 18K or 22K gold, which is more affordable as opposed to 24K gold. This causes a difference in the prices of gold jewelry and gold biscuits or raw gold, making the latter more expensive.

Can Tourists Purchase Gold in UAE?

Gold has always been a valuable metal for people all around the world. Most of the people consider it to be a safe investment tool.

The Emirates is a paradise for those who are looking to buying gold because of the large amount of gold mining that takes place in the UAE. The UAE gold market is famous amongst the residents as well as the tourists due to the attractive rates offered.

Although they can buy gold in the UAE, the amount of gold they can purchase is based on the country of their residence. Every country has its own allowance of the amount of gold, which can be brought back in terms of cost as well as weight.

Why is Gold Used in Electronic Products?

Gold is a metal, and its physical properties make it useful in a huge range of electronic products. Here are some of these properties.

  • This precious metal is highly conductive.
  • Gold has a soft pliable texture. This makes it easy to draw out into thin wires or plates into thin coatings.
  • Unlike other metals, which are pretty much conductive, like copper & silver, gold would not tarnish or corrode

Why is it important to check today gold rate in UAE?

Ans:

It is crucial to check the current gold rates because even tiny changes in the price may trigger huge losses. Therefore, to be on the safer side, you must cross-check the prices before purchasing or investing in gold.

What is the difference between ‘Carat’ and ‘Karat’?

Ans:

Both Carat and Karat are a unit of measurement for mass; however, they are two different things. Karat is the measurement for checking the purity of gold while Carat is used for measuring diamonds & other gemstones.

Why does gold always retain its value?

Ans:

Gold has the capability of retaining its value even in the future, because of its monetary quotient. There has been a value of gold since the beginning of civilization, irrespective of the political, economic, and social changes. The gold gets devalued too, but never reaches zero.

What is the worth of one ounce of gold today?

Ans:

An ounce or troy ounce is a royal gold measurement that is equivalent to an estimate of 31 grams of gold. Since gold prices fluctuate on a regular basis, the rate of one ounce of gold may be different from one place to another.  

Why is there a frequent fluctuation in the gold rate in UAE?

Ans:

The economic and political changes throughout the globe are the main reason for changes in gold prices.

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