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Learn About Gold
Karats · Pricing · AED Peg · Zakat · Hallmarking
Learn Hub8 min readUpdated 2026-05-25
Gold Karats Explained
A karat (K or kt) is the unit used to measure the purity of gold. Pure gold is 24 karats (24K). Most jewellery uses an alloy — a mixture of gold with other metals — to improve durability and manage cost.
Comparison of common gold karats
| Karat | Purity | | Gold Content | Common Use |
|---|
| 24K | 99.9% | | 24/24 parts gold | Investment bars & coins, electronics |
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| 22K | 91.7% | | 22/24 parts gold | Gulf jewellery, bridal gold (UAE, SA) |
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| 21K | 87.5% | | 21/24 parts gold | Levant & Egyptian jewellery |
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| 18K | 75.0% | | 18/24 parts gold | Fine jewellery, diamond settings |
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| 14K | 58.3% | | 14/24 parts gold | Western jewellery, fashion pieces |
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| 9K | 37.5% | | 9/24 parts gold | UK & Australian budget jewellery |
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Why does karat matter?
Higher karat gold is softer and more vibrant yellow in color, but scratches more easily. Lower karat alloys are harder, more durable, and can be tinted white, rose, or green depending on the metals added (silver, copper, palladium). The price you pay is directly proportional to the gold content.
How Gold Prices Work
The gold price you see quoted globally is the spot price — the current market price for immediate delivery of one troy ounce of 99.9% pure gold, in US Dollars (XAU/USD).
Where is the price set?
Gold trades 24 hours a day on global markets. The two primary venues are:
- COMEX (New York): The world's largest futures exchange for gold. COMEX prices drive global sentiment.
- LBMA (London): The London Bullion Market Association sets a twice-daily benchmark called the London Gold Fix, used as the reference for physical gold contracts worldwide.
- OTC Markets: Over-the-counter 24-hour trading between banks, refineries, and dealers accounts for the bulk of daily gold volume.
What moves the price?
- US Dollar strength: Gold is priced in USD. A stronger dollar makes gold more expensive for foreign buyers, reducing demand and pushing the price down — and vice versa.
- Interest rates: Higher interest rates increase the opportunity cost of holding gold (which pays no yield), pushing prices down. Rate cuts tend to boost gold.
- Inflation: Gold is a traditional inflation hedge. Rising inflation expectations often push gold prices up.
- Geopolitical risk: Wars, sanctions, and political instability drive investors to gold as a safe haven.
- Central bank buying: Central banks — especially in emerging markets — have been net buyers of gold since 2010, supporting prices.
- Jewellery demand: India and China account for over 50% of global gold jewellery demand. Seasonal festivals create demand spikes.
Our Price Data
We fetch the XAU/USD spot rate from gold-api.com hourly during market hours and commit it to this repository as data/gold_price.json. Exchange rates come from open.er-api.com. All prices shown are estimates — retail prices include additional charges.
The AED–USD Fixed Peg
The UAE Dirham (AED) has been fixed at exactly 3.6725 AED per US Dollar since November 1997.
- AED gold prices move in perfect proportion to USD gold prices.
- There is no exchange-rate risk for UAE residents holding USD-denominated assets.
- There is no currency-conversion uncertainty — the official rate does not change.
This peg is maintained by the UAE Central Bank through direct market intervention when needed. The country's large USD reserves help keep the peg credible and predictable for households, investors, and jewellery buyers.
On this site, we never use a third-party exchange rate for AED. We hardcode the official peg rate of 3.6725.
Zakat on Gold
Zakat is one of the Five Pillars of Islam — a mandatory annual charitable contribution for Muslims who hold wealth above the nisab threshold for a full Islamic lunar year (hawl).
The Nisab Threshold
The gold nisab is 85 grams of 24K (pure) gold.
The Zakat Rate
The Zakat rate on gold is 2.5% of the total value of your gold holdings.
What counts?
- All gold jewellery intended for investment or storage (not regular personal use — scholars differ on this point).
- Gold bars, coins, and ETFs.
- Gold held at a bank, depository, or private vault.
Use Our Zakat Calculator
Our Gold Calculator includes a Zakat mode that estimates your obligation using today's reference gold price. Always consult a qualified scholar for your specific situation.
Gold Hallmarking
A hallmark is an official stamp applied to a gold article after independent testing (assay) to certify its purity.
Common hallmark fineness codes
| Millesimal Fineness | Karat | Purity |
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| 999 | 24K | 99.9% |
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| 916 | 22K | 91.7% |
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| 875 | 21K | 87.5% |
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| 750 | 18K | 75.0% |
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| 583 | 14K | 58.3% |
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| 375 | 9K | 37.5% |
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UAE Hallmarking
The Emirates Authority for Standardization and Metrology (ESMA) oversees gold hallmarking in the UAE. Hallmarked gold in the UAE shows the Emirates Quality Mark alongside the karat stamp (for example, 916 for 22K, meaning 91.6% purity).
India — BIS Hallmarking
The Bureau of Indian Standards (BIS) mandates hallmarking for gold jewellery sold in India. A BIS hallmark includes the BIS logo, purity in parts per thousand (for example, 916 for 22K), and the jeweller's unique identification number (HUID).
UK Hallmarking
UK hallmarking is among the world's oldest and strictest. Assay offices stamp articles with the maker's mark, the purity (for example, 750 for 18K), the assay-office mark, and optionally a year letter.
Frequently Asked Questions
Quick answers to the questions buyers ask most often.
What is a karat in gold?
A karat (K or kt) is a unit measuring gold purity. Twenty-four karat gold is effectively pure gold (99.9%). Twenty-two karat is 91.7% gold, 21K is 87.5%, 18K is 75%, and 14K is 58.3%. The rest is other metals such as silver, copper, or palladium.
Why is the UAE Dirham pegged to the US Dollar?
The UAE Central Bank has maintained a fixed exchange rate of 3.6725 AED per US Dollar since 1997. The peg supports monetary stability, reduces currency uncertainty for trade and savings, and aligns the Dirham with the region's dominant invoicing currency.
How is the global gold price determined?
The global gold spot price (XAU/USD) is discovered on commodities markets — primarily COMEX in New York and the London over-the-counter market. The London Bullion Market Association also publishes benchmark fixings used for many physical contracts.
What is the difference between spot price and retail price?
The spot price is the raw market value for pure gold. Retail jewellery and coin prices add making charges, dealer margins, logistics costs, and taxes. That is why a shop quote is higher than the reference price shown on a tracker.
Is our data real-time?
We refresh gold prices during market hours and label freshness clearly. Surfaces on Gold Ticker Live tell you when data is live, cached, delayed, or fallback so stale reference data is never presented as a fresh shop quote.
What is a troy ounce?
A troy ounce (ozt) is the standard precious-metals unit. It equals 31.1035 grams, which is heavier than a regular avoirdupois ounce. International gold prices quoted per ounce always refer to troy ounces.