How higher gold prices are affecting zakat calculations this Ramadan
Al Jazeera
February 26, 2026
AI-Generated Deep Dive Summary
Ramadan is a time of reflection and giving for many Muslims, as they fulfill their obligation to pay zakat, an essential pillar of Islam aimed at purifying wealth and supporting the needy. This year, however, rising gold prices have introduced significant changes in how Zakat is calculated. With gold prices nearly doubling since last Ramadan—from $2,900 per ounce to over $5,100—this has directly impacted both the eligibility threshold (nisab) for Zakat and the amount owed by individuals.
Traditionally, the nisab is measured in 85 grams of gold, equivalent to roughly $15,000 today. This increase means fewer individuals may now meet the threshold, potentially exempting some from paying Zakat this year. For those who are obligated, higher gold prices have increased the amount due. Calculations are based on current market value rather than the original purchase price of gold assets.
Understanding how to calculate Zakat for gold involves determining its weight and purity. Pure gold is 24 karats, but items can range from 22K to 18K, with lower karats indicating less pure gold. The purity affects the item's value in troy ounces and thus its contribution to one’s wealth calculation.
The rising cost of gold highlights a broader issue: economic conditions influencing religious practices. This shift underscores the adaptability of Zakat rules, which are designed to remain relevant across varying economic landscapes. While some may find themselves with reduced obligations due to the higher threshold, others will see an increase in their contributions based on their gold holdings.
This year's changes emphasize the dynamic nature of Zakat and its connection to global economic trends. As gold prices continue to fluctuate, understanding these impacts becomes crucial for Muslims around the world, particularly as they prepare for Ramadan and beyond.
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Originally published on Al Jazeera on 2/26/2026