AED rate per gold rate gm as of September 28, 2024
24K AED 322.00 22K AED 298.00 21K AED 288.50 18K AED 247.25
The United Arab Emirates (UAE) boasts a thriving gold market, cementing its position as a major player in global gold trading. With gold reserves accounting for more than a third of imports, the UAE has emerged as an important hub for gold trading. The UAE’s key markets include India, Switzerland and the United States, with gold imports valued at $20 billion in 2019, a notable increase from the previous year.
Demand and supply dynamics
In the UAE, demand for gold is primarily driven by consumer jewelery purchases, which account for almost half of all gold transactions. Additionally, institutional investors and banks play a vital role, acquiring large amounts of gold during times of economic uncertainty and when the potential for profit arises. Although domestic production is mainly supplemented by imports from Africa and Europe, the UAE relies heavily on global markets to meet its gold supply requirements.
Future trajectory
Going forward, the UAE gold market is poised to weather various geopolitical and economic factors that may impact its trajectory. Fluctuations in oil prices and concerns about global economic growth may impact demand for gold products. Additionally, the continued shift from physical gold to digital investments may pose challenges to the UAE’s status as a prominent trading hub for precious metals. Nevertheless, the country’s strong infrastructure, supportive government policies, and active involvement in international initiatives point to promising prospects for continued industry dominance.
Understanding carat/carat
The purity of gold is measured in carats or carats (symbol/abbreviation K), with pure gold labeled as 24K. Pure gold is malleable and ductile, but its softness makes it unsuitable for jewelry. Therefore, gold is usually alloyed with other metals to increase its durability. The breakdown of common gold alloys is as follows:
24K: Pure gold. 22K: An alloy containing 22 parts pure gold and 2 parts other metals, with a gold ratio of 91.7 (22/24). 21K: An alloy of 21 parts pure gold and 3 parts other metals, with a gold ratio of 87.5 (21/24). 18K: An alloy of 18 parts pure gold and 6 parts other metals, with a gold content of 75 (18/24). 14K: An alloy of 14 parts pure gold and 10 parts other metals, with a gold ratio of 58.3 (14/24). 9K: An alloy containing 9 parts pure gold and 15 parts other metals, with a gold percentage of 37.5 (9/24).
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