It’s taxing to keep a tab of the loans, credit card bills, and utility bills to pay these off timely and avoid incurring any additional charges.
Invest in GOLD and give a boost to your investment portfolio
When it comes to buying or investing in gold, one must understand the primary factors that affect its rate. In this article, we have mentioned some of those important factors that determine the gold rate in UAE.
Supply and demand is amongst the key factor that has a great influence on gold prices. When the demand for gold is high and supplies for the yellow metal are low then the gold price in UAE will increase. On the other hand, when the demand for gold is low and supplies are high, gold prices will decrease.
During stressful times of economic recession, more and more people turn to invest in this yellow metal due to its enduring value. This precious yellow metal is basically reckoned as a haven for gold investors during stressful times. When the actual returns or expected returns on equities, bonds, and real estate fall, the interest in investing in gold can increase thus the price of gold can also increase. Gold can be utilized as a hedge to safeguard against economic uncertain events such as inflation or currency devaluation.
The rate of gold is usually inversely proportional to the value of the US dollar since the gold is dollar denominated. So, a stronger US dollar tends to keep the gold rate on UAE lower and more controlled while a weaker US dollar is likely to keep the gold rate higher.
Be it a wedding, festivals, or any other auspicious occasion, gold jewelry holds a very special place. During the wedding season and festive season, gold price in UAE increase as a result of rising consumer demand. The demand for this precious yellow metal doesn’t just end at jewelry requirements. The gold is also used in small quantities by several electronic entities for manufacturing devices such as a computer, GPS, television, etc.
In the UAE, this metal is utilized for jewelry requirements, for showing off wealth, and also strong hedge against inflation. All of these things combined and they make the demand for the yellow metal increased. Therefore, gold rates can be significantly affected by the basic principle of supply and demand. As the demand for gold jewelry and electronics goods rises, gold prices can also increase.
The gold rate in UAE is predominately based on the global costs of gold. Any global movement in the cost of this yellow metal affects the price of the gold in the country. And the UAE is one of the largest importers of this precious metal i.e. gold. Therefore, whenever there is even a slight change in the global rate of gold, the import values also do change accordingly.
Mining companies rise gold prices at times on the basis of production costs. Well, its significant effects reflected in the price of this yellow metal that is imported in the UAE.
Well, the buying power of this yellow metal has always remained uniform over the ages whether it is the latest gold rate in UAE or what was it a few years ago. People buy gold irrespective of any factor during to its enduring value.