Gold has always been the favorite of many not just as a metal for making jewelry but as a type of investment. The Gold rate in Dubai, as well as other countries, keep fluctuating regularly and the end price is usually determined by the demand and supply forces in the market. There are different ways in which, the demand for the yellow metal is analyzed and categorized such as jewelry demand, technology demand, investment demand and central banks demand.
Focusing on the UAE market, the retail Gold rate today in Dubai is AED 153.75 for 24K, AED 144.50 for 22K, AED 137.75 for 21K and AED 118.00 for 18K. These are the prices quoted in UAE today for one gram of gold.
The Government of Dubai has displayed several outdoor signs, thus giving details of the city’s live retail gold rate to the citizens. Such displays are mainly found at locations like Gold Souk which is popular for gold trading. Besides, the authorities are also trying to maintain transparency and help the city retain its status as the “City of Gold.”
The Carat or otherwise spelled as Karat is nothing but a unit used to measure the purity of the metal. When purchasing gold or gold ornaments, usually we get to hear the terms like 24K gold, 22K gold and so on. Hence, the price depends on the karat value also. Normally, this measurement is done in four ways, which are:
18K – includes 18 parts of pure gold along with 6 other metals.
21K – includes 21 parts of pure gold along with 3 other metals.
22K – includes 22 parts of pure gold along with 2 other metals.
24K – includes only pure gold.
The following table states about the Gold rate in Dubai today for one gram. Along with the Gold price per gram in AED, the table also lists the currencies of different nations including US Dollars, Indian Rupees, Pounds, and Euros.
As per the above table, currencies of different nations are mentioned. And their exchange rates are used as:
US Dollars – 1 US Dollar (USD) = AED 3.673/1 AED = 0.272 US Dollars
Eurozone Euros – 1 Euro (EUR) = AED 4.282/1 AED = 0.234 Euros
British Pounds – 1 British Pound (GBP) = AED 4.872/1 AED = 0.205 British Pounds
Indian Rupees – 1 Indian Rupee (INR) = AED 0.054/1 AED = 18.538 Indian Rupees
The above-mentioned exchange rates are listed as of today.
Since gold is a commonly traded commodity, it is essential to note that the price of this yellow metal is set internationally. It is in London where the benchmark gold price is normally set and based on which, the trades are settled in different markets across the world. And this price is set by the members of the London Bullion Market Association (LBMA). These members take part in the electronic auctions to set the price. On every business day, two electronic auctions will take place one in the morning and another in the afternoon. The price set by these members of the association are generally quoted in US Dollars for a troy ounce (31.1034768) of pure 24K gold.
As of July 2015, the electronic auctions were participated by Goldman Sachs, Bank of China, JP Morgan, Societe Generale, UBS, Standard Chartered, Barclays, HSBC, Morgan Stanley, and Scotia Mocatta.
The Gold prices in Dubai for the last seven trading days as per the LBMA are listed in the gold price chart below. In addition to the prices, you will also find their equivalent prices in AED as well. (1 USD = AED 3.673)
The Gold price in Dubai set by LBMA is generally measured as the price for a troy ounce of pure gold. In Dubai, the retail rate is established for one gram of gold. A troy ounce of gold equals to 31.1034768 grams. Hence, here we provide a listing of the LBMA gold prices per gram for the last seven trading days in the following gold price chart.
Generally, there exists a difference between the Dubai retail rate and the LBMA Gold price per gram for several reasons. Some of these include:
→ A benchmark LBMA gold price is established.
→ There is a difference in timings between Dubai and London. Dubai is four hours ahead of London. At the time of the start of businesses in Dubai, the recent LBMA Gold price will already be set the before the day itself.
→ The gold rate or price in Dubai is quoted as the retail rate and this also considers a small premium that covers bullion delivery charges as well as customs duties. In addition, it also takes into account the margin to keep the sellers in a safe zone from price fluctuations.
In Dubai, generally the price of gold jewelry items consists of:
→ Gold Price – the gold price used in the jewelry
→ Making Charge – it is the price added by the retailer to make up for the cost of producing that jewelry piece and to make a profit.
In most of the outlets in Dubai including Gold Souk, haggling is quite common. However, it is possible to negotiate the price for the making charge factor. But regardless of any store, any gold jewelry piece is not sold at an equal price or less than the live value of its gold content. When compared to other locations, the making charges for gold ornaments in Dubai are relatively cheaper. In addition, buyers are also not levied for VAT or sales tax in this city. Hence, this is one of the main reasons which makes the gold jewelry shopping pretty reasonable in Dubai than in other countries.
Along with Gold ,Dubai is famous for online shopping and Deals in Dubai which provide wide varieties of products for much better prices.