Gold Price (AED per gram) as of August 13, 2024
24K AED 298.00 22K AED 276.00 21K AED 267.25 18K AED 229.00
The United Arab Emirates (UAE) has a booming gold market, cementing its position as a major player in the global gold trade. With gold reserves accounting for more than a third of its imports, the UAE has emerged as a key hub for gold trading. The UAE’s main markets include India, Switzerland and the US, and gold imports in 2019 totaled $20 billion, a significant increase from the previous year.
Demand and supply dynamics
In the UAE, gold demand is primarily driven by consumer jewellery purchases, which account for almost half of total gold trade. Additionally, institutional investors and banks play a key role by purchasing large amounts of gold during periods of economic uncertainty and potential profits. The UAE supplements its domestic production with imports, mainly from Africa and Europe, but is heavily dependent on global markets to meet its gold supply requirements.
Future trajectory
Looking ahead, the UAE gold market is poised to weather a range of geopolitical and economic factors that may impact its trajectory. Fluctuations in crude oil prices and concerns about global economic growth could impact demand for gold products. Additionally, the ongoing shift from physical to digital gold investments could pose challenges to the UAE’s status as a leading trading hub for the precious metal. However, the country’s robust infrastructure, supportive government policies, and active engagement in international initiatives brighten the outlook for the country’s continued dominance in the industry.
Understanding Carat/Carat
Gold purity is measured in carats or karats (the symbol/abbreviation K), with pure gold being labelled as 24K. Pure gold is malleable and ductile, but is too soft to be suitable for jewellery, so gold is usually alloyed with other metals to make it more durable. Here is a breakdown of some common gold alloys:
24K: Pure gold. 22K: An alloy of 22 parts pure gold and 2 parts other metals with a gold content of 91.7 (22/24). 21K: An alloy of 21 parts pure gold and 3 parts other metals with a gold content 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 content of 58.3 (14/24). 9K: An alloy of 9 parts pure gold and 15 parts other metals with a gold content of 37.5 (9/24).
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