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Gold Rate in UAE Today

Invest in your future! Invest in Gold

Today's Live Gold Price in UAE

Gold Unit UAE

(in AED)

India

(in INR)

USA

(in USD)

Europe

(in EUR)

UK

(in GBP)

24 Karat 2257 53219 614 582 490
22 Karat 2068 48748 563 534 449
18 Karat 1693 39914 461 437 368
14 Karat 1316 31026 358 339 286
10 Karat 939 22138 255 242 204

*Disclaimer: The gold rates mentioned above are subject to changes as per the prevailing market prices.

Gold in the UAE

UAE is considered as one of the world’s most popular and important market for gold. Recognised as the hub spot of gold trading, The UAE is deemed as the most valuable destination for gold investors who want to maximise their portfolio and profits. Gold has held a significant importance in the history and culture of the UAE for centuries. For UAE, gold holds a deep economic, cultural, social, and an aesthetic relevance even in today’s date.

The UAE holds the position of being the world’s largest source and the second largest market for gold. UAE, also named as the ‘City of Gold’ has had a prominent role to play in establishing the region as a significant force in the global gold market.

Growth of Gold in the UAE

The use of gold as a valuable metal can be traced back to the Biblical references of the middle east. Gold was known to hold the largest monetary standard during that era. Important structures like tombs, statues, temples, shrines, weapons, and glassware were known to be decorated with gold. It is also believed that gold has been used as jewellery since the ancient civilisation of the Middle East which dates to over 6000 years.

In the early 1900, gold had gained significant importance for trading. Merchants were drawn to the UAE by the tax-free and trade friendly environment. They set up their shops by the creek and harbour and in time due to the idle location for trade, safety, and proximity to sources of both supply and demand for gold, the market grew.

Gold in the UAE economy

Gold has always held importance in human history. Even before money had been invented, gold was used for exchanging of goods and services. In some form or another throughout human history, gold has been used as money. Only in the last two centuries has money shifted away from gold coins and paper notes that were backed by gold standard to a flat system that is not backed by a physical commodity. Factors like inflation and a weakening currency have resulted in higher gold prices since those times. By purchasing gold, people can also protect themselves against global economic uncertainties.Gold prices also have a significant impact on national economies that participate in global trade and finance.

Gold as a versatile investment option in the UAE

People have been investing in Gold since a very long time. Along with other instruments, gold has always been a promising choice to invest in and the versatility of gold enhances your overall investment portfolio in myriad ways. Since 1981, gold’s average annual return of 10% has outperformed consumer price index (CPI) at 7.35%. Gold is also a favourable investment to hedge against market risks. When inflation was higher than 6%, the price of gold had increased by 11.5%. Supply of gold has been almost constant over the past 20 years, with a growth of 1.6% on an average per year. If between 5% to 10% of your portfolio was allocated to gold, you could have achieved higher risk adjusted returns. Gold also tends to have liquidity, as the trading volumes are similar to S&P 500 and short terms US Treasuries. Hence it is a good idea to invest in gold.

Performance of Gold in the last 10 years in the UAE

In the last decade, the economical and financial scenarios have changed drastically around the world. Gold has however continued to maintain a positive performance in the market. Investing in gold also offers a competitive return and is a reliable long-term investment. Gold has delivered an average annual return of 9% over the last 10 years as compared to stocks.

    Below are some factors that drive gold’s positive performance since the last decade:

  • Used as an investment, which in turn helps to:
    • Hedge against inflation
    • Mitigates portfolio losses
    • Drives capital growth
  • Increase demand as an adornment in the form of jewellery
  • Used as a key component in electronics

Comparing Gold to other asset classes

Gold has always held the symbol of wealth and has always been in high demand. After the high price volatility in the 1970s, gold returns have reached a steadier level. Thus, continuing to generate potentially viable investment interest. Gold has been giving positive returns across various market conditions, thus outperforming other asset classes in the long run.

    Some of the reasons why gold has had an increase in demand as an asset are because:

  • Central banks store gold as forex reserves
  • Institutional investors who view gold as a safe cushion amidst low interest rates
  • Individuals who seek gold in the form of precious ornaments and also,
  • Individuals who seek gold as investments for wealth accumulation and protection
  • The supply is limited, making it rare and always in demand
  • The value of the asset remains for a very long time, even after centuries
  • Gold performs consistently
  • Gold outperforms flat currencies

These factors have contributed significantly to an investor’s love for gold.

Factors that drive gold’s performance and investor returns in the short term

Since gold has already proven to yield high returns in the long run, its popularity has only increased. Short-term investors also prefer to add gold investments to their portfolio.

    Some of these factors are:

  • Geopolitical tensions
  • Economic growth
  • Uncertainty and risks
  • Monetary policy changes
  • Opportunity cost
  • Interest rates
  • Momentum

Gold prices typically average out over a period of 7-10 years and give a higher rate of return as compared to other commodities. If you have diversified the gold investments in a mix of equities like mutual fund and government guarantee like stocks and bonds, you are likely to see better returns on investments. This is because gold prices are influenced by multiple short-term factors that are unpredictable. Since gold performance is extremely close to inflation levels, the diverse portfolio helps you safeguard your investments against market downturns.

Factors affecting gold price in the UAE

  • Production of gold
  • Demand for gold
  • Global market
  • inflation factors
  • Change in the US Dollar
  • Tax and Import Duties
  • Central bank reserves

Factors to consider while buying gold in the UAE

  • Competition
  • Convenience
  • Sales tax
  • Overstated prices
  • Online options

How to find the best gold rate in the UAE

  • Consider both online and offline options
  • Shopping around
  • Selection of jewellery or bars
  • Checking the UAE Gold price today
  • Being aware of different gold types
  • Haggling

How is gold measured in the UAE?

In the global market, gold rate differs from the measurement unit as every country has different rules and measurement units for gold.

    Following are the most commonly used:

  • Gram (g)
  • Troy Ounce (oz t)
  • Tola
  • Pennyweight (dwt)
  • Tael (or tahil)
  • Baht
  • Grain

Different types of karats of Gold in the UAE

The purity of gold is measured by Karat. The higher the karat, the higher the purity of gold. Different types of gold are used to make different objects of gold.

    Below are the popular different types of karat gold

  • 24 Karat Gold: This is 100% pure gold and doesn’t have any other metal mixed in it. it is bright yellow in colour and referred to as 99.9% pure in the market. This is the most expensive type of gold. It is not used for making jewellery as the texture is soft and pliable. Usually this is available in the form of bars and coins
  • 22 Karat Gold: This metal consists of 22 parts of gold metal and other 2 metals like silver, nickel, zinc, and other alloys. In the market this type is recognised as 91.67% pure gold. This type of gold is usually found in jewellery.
  • 18 Karat Gold: This type of gold consists of 75% of gold and 25% of other metals like zinc, copper, silver, and other alloys. This type if more affordable as compared to 22 karat and 24 karat gold. It is commonly used in making jewellery that is stone studded or in other diamond jewellery.

How to check the purity of gold in the UAE market?

To avoid being cheated on, it is always a good idea to check the purity of gold before buying. Below mentioned are a few ways to check the purity of gold:

  • Check for discoloration on the metal
  • Check for any different metal or fading of colour
  • Check the hallmark stamping
  • Use a magnet to detect other metal that may be mixed as gold is anti-magnet

Post Covid Gold scenario

Despite the uncertainty and unpredictably of the market caused by the coronavirus pandemic, there has been a steep rise in gold prices around the world. As the stock markets have plunged due to the pandemic, gold has continued to prove its worth and has proved to be a safe haven investment option. Despite periods of deflation and inflation, gold has always had the tendency to be profitable. Due to these reasons, the uncertainty surrounding the state of the coronavirus pandemic, gold will continue to be an attractive investment avenue as the governments around the world are aiming to stimulate demand. Gold is used as a reserve asset by central banks because it offers safety, liquidity and returns. Even as all the economies around the world open back up, gold will continue to help usher in a renewed sense of financial security.