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Why Dubai is Termed the City of Gold?

Why Dubai is termed as city of gold?

Dubai, one of the most popular cities of UAE is also known as the city of gold for influential growth from the sleepy gulf to the world’s eminent business crossroads just because of the highest trading rate of the yellow metal all over the world. Due to this fact, the Dubai gold market is the best hotspot for investors who are looking for more profit and economic establishment. It takes the raw material from Ghana and then sells it to other buyers from South Asian and Middle East countries. It has about 29% market shares in the global gold trading market with 1200 tons of gold. The purity of the material and the high-profit rate attracts investors more.

If you are also one of those who want to invest in the Dubai gold market, then the most important step is to check the gold rates these days. We all are familiar with the fact that gold is the most pretentious metal with a great market value that has gained much-needed liquidity, especially in this pandemic situation. During these days of unstable situations, gold is more than metal for investors. The price of gold is taken as the inverse of the US dollar rate. When the dollar’s rate decreases, the rate of gold becomes high. In the Dubai market, a lot of fluctuations come daily related to the gold rate. Let’s have a look at the gold rate in Dubai these days.

Gold Rate in Dubai

Gold in Dubai

The Government of Dubai ensures to provide pure gold to the buyers at the retailer prices to keep their name as the city of gold. DCLD – Dubai Central Laboratories Department

in Dubai is specific for checking the product quality and assurance. The measurement unit of gold in Dubai is Karat, used to measure the purity of the gold. Different keywords are used to determine the purity of the gold, such as 24K is for pure gold, 22K is for an alloy of gold with 2- parts of other metal, 21K contains 87.2 % pure gold, and so on. According to the recent updates, the gold rate these days is:

  • 214.25 AED/1gram for 24K
  • 201.25 AED/ 1gram for 22K
  • 192.00 AED/ 1gram for 21K
  • 164.50 AED/ 1gram for 18K

Pure gold is not for Jewellery purposes, and most Asians and Indian buyers prefer to buy 22K as it is more suitable for making jewelry while European visitors look for 18K gold. It is an appropriate time for investors to invest in the Dubai gold trading market for getting the maximum profit.

The rates of gold vary from time to time. In order to stay updated with the most recent and accurate gold rates check this website: goldrateindubai.com

Factors that Affect the Gold Rate

Gold in Dubai

Certain factors affect the rate of gold on the daily basis; these factors can increase and decrease the rate of gold in the market.

Such as:

  • Most investors buy gold for safe investments that may prove beneficial during the economic downturn. So wealth protection also affects the rate of yellow metal
  • Mining of the gold increase the production of cost
  • The demand for gold according to time
  • Taxes and import duties