Gold Rate in UAE Today

The UAE Gold Rate Market

The UAE has long been a major player in the international gold market, with over 33% of its imports being in gold reserves. The top three markets for the UAE are India, Switzerland and the USA. As of 2019, gold imports in the UAE stood at US$20 billion, a significant increase from 2018 where it was standing at US$12 billion.

Gold Rate Supply and Demand:

Gold demand in the UAE is primarily driven by consumer jewellery purchases, which account for nearly half of all gold transactions. In addition to this industry participants play a significant role as well, with institutional investors and banks buying up large chunks of gold when economic uncertainty rises or there is potential for profit. As for supply, the country relies heavily on imports from global markets to supplement their domestic production, with most coming from Africa and Europe.

Future Trends:

Going forward, the UAE’s gold market is likely to be affected by geopolitical factors such as the price of oil and economic concerns such as slower global economic growth which could slow demand for their products. Additionally, the ongoing shift away from physical gold towards digital investments may affect their status as a hub for trading precious metals. Despite these potential risks, signs point to an ever-strengthening presence in the industry given its robust infrastructure, supportive government policies and active participation in international initiatives.